Health Affairs, 27, no. 5 (2008): 1349-1352 doi: 10.1377/hlthaff.27.5.1349 © 2008 by Project HOPE	New Online   House Health Reform Bill   Paying for Reform   Vetting AHIP's Report   HIV/AIDS Costs   Brief: Insurance Reform   HA Blog Top 10

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Perspectives

PERSPECTIVE

‘We Aren’t Quite As Good, But We Sure Are Cheap’: Prospects For Disruptive Innovation In Medical Care And Insurance Markets

The concept of "disruptive innovation" by new products of moderately lower quality and much lower cost is useful for the medical care sector. Such products are rarely offered, and when they are (as in the case of health maintenance organizations), they are subject to intense criticism. This Perspective argues that both the legal system and accepted discourse in public policy have inhibited discussion of such alternatives; indeed, the paper by Jason Hwang and Clay Christensen loses its focus on them at the end. The applicability of this concept is quite limited but, given sufficient changes in framing and regulating, might be helpful in the future.

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