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Essential Characteristics of Service Business Model Innovation in Healthcare: A Case-Study Approach

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Service Business Model Innovation in Healthcare and Hospital Management

Abstract

Like any business, healthcare organizations must evolve to stay competitive. Specifically, in the new healthcare environment, a firm’s essential focus on the customer must expand from thinking solely of the patient to considering other healthcare providers as customers. Healthcare organizations that have succeeded in creating service business model innovation in the new world of accountable care, integrated delivery, shared-savings and value-based approaches have certain characteristics in common. In these contexts, a health organization must trust its partners more than ever before. In the old paradigm, a healthcare organization “partnered” through referrals, but there were no consequences to the organization if the referred patient performed poorly. Now, and increasingly in the future, a healthcare organization must be concerned about the quality of care a patient receives from other providers in accountable care organizations or other parts of the integrated network. Innovation that leads to improved performance requires focusing on the role of cooperation and trust in changing both processes and resources required to deliver value to customers. Organizations that were formerly competitors may become partners through service business model innovation. What does it take to create trust and cooperation between former competitors who are now internal customers? The chapter will present four case studies illustrating trust, cooperation and leadership as essential components of successful service business model innovation in healthcare. Examples will be provided that clearly show how to build trust and cooperation with other healthcare providers in clinical expertise, financial management, care coordination and patient satisfaction through strong leadership and management.

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Acknowledgements

Thank you to Dr. Horn (MGPO), Sarah Krevans (Sutter), Dr. Mack (BSW), Sandra Van Trease (BJC) and Dr. Wreden (Sutter) for participating in interviews in March and April, 2016, on behalf of their organizations.

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Correspondence to Brenda Gleason .

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Gleason, B., Bohn, J. (2017). Essential Characteristics of Service Business Model Innovation in Healthcare: A Case-Study Approach. In: Pfannstiel, M., Rasche, C. (eds) Service Business Model Innovation in Healthcare and Hospital Management. Springer, Cham. https://doi.org/10.1007/978-3-319-46412-1_8

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