CHAPTER EIGHT
HEALING THE 800-POUND GORILLA
Do the theories of innovation apply to health care, or is it somehow different? Can health care providers overshoot customers? What do asymmetries look like? Who would ever want a “less good” product? How do nonmarket forces such as the third-party payment system affect disruption? What sorts of choices can firms make to maximize their chances of driving disruptive growth? What sorts of choices can the government make to encourage disruption?
In this chapter we turn to the 800-pound gorilla sitting quietly in the corner.1 Health care is a vitally important industry that captures about one of every seven dollars spent in the United States. Is there any other industry where ...
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