Dana Blankenhorn

Rethinking Healthcare

Private health reform is MinuteClinic for everyone

By Dana Blankenhorn | Feb 2, 2010 |

With systemic health reform apparently dead, the topic is now in the hands of entrepreneurs like Jay Parkinson.

Best known for the Health 2.0 system Hello Health, which is driven by a medical care platform called Myca, Dr. Parkinson has now launched a Web design firm called The Future Well.

“I realized medicine sucks,” he told a 2008 conference. (The picture is a still from that performance.)

Hello Health is Internet-based concierge medicine. There’s a fixed fee that gets you your check-ups, but it also gets you your health data and an ongoing, online relationship with health professionals.

“Think of it like ZipCar,” he said.

That’s one route to reform. Scaling-out new primary care systems that give people data, and access to expertise, while improving doctors’ productivity and guaranteeing revenue streams, may prove a far more efficient use of an employer’s health care dollar than a conventional insurance plan.

That’s fine for wellness and primary care. But what happens when you actually need help?

Forcing patients to shop for care with high-deductible health plans, and franchising efficiency in urgent care through things like Minute Clinic, seem to be his answer.

As Parkinson wrote for Business Week recently, high-deductible plans are coming, which will transform medicine by making consumers cost-conscious on health products and services.

Franchised systems — a Starbucks of health care he calls it — can deliver transparent pricing, and a branding message that cuts through the problems of shopping, just as in other industries.

Don’t meddle with traditional health care, he advises. Instead, innovate around it and, in time, replace it:

Differentiate and go straight after the cash-paying consumer with elegant experiences that are human-centric, simple, data-driven, and connected to the platform. Create a network of effective, convenient solutions for simple problems. Meet 90% of the health needs of 90% of the people.

Once the economic pillars are kicked out from under them, he says, the other players will be forced to compete themselves, giving patients access to prices on drugs and procedures.

Can it work? For the upper middle class, I think it can. Given the reluctance of the market to move, and the impossibility of making it move through politics, the best we can hope today is that Parkinson becomes medicine’s Sam Walton. Soon.

 
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  •  
    1

    WinstonV

    02/02/10 | Report as spam

    RE: Private health reform is MinuteClinic for everyone

    It's not just an upper middle class solution. Consumer directed health plans, especially those that have a cash funding component through an HSA or FSA type account, work even in the public sector. I would encourage you to research the Healthy Indiana Plan with it's POWER account component. The idea that only the upper middle class will be fiscally responsible and shop for healthcare is contradicted by the results of these types of plans.

  •  
    2

    jayparkinson

    02/02/10 | Report as spam

    RE: Private health reform is MinuteClinic for everyone

    Thanks for the post Dana...but just to clarify. The Future Well is
    not just a web design firm. We design products, services,
    experiences, strategies, identities, brand positioning, and
    business models.

  •  
    3

    DanaBlankenhorn

    02/02/10 | Report as spam

    Thanks Jay

    Glad to see you here. And thanks for the clarification.

  •  
    4

    jrrodartemd

    02/03/10 | Report as spam

    RE: Private health reform is MinuteClinic for everyone

    I too believe Internet Based Concierge Medicine is coming. I also recently read on a site called Concierge Medicine Today, that when concierge physicians were asked ?how is your practice performing financially compared to one-year ago?? Surprisingly, concierge physicians across the U.S. polling data shows:

    ? Nearly sixty percent (60%) of all current concierge physicians are doing ?Better? financially than one-year ago.
    ? Twenty-nine percent (29%) indicated ?No Change? and;
    ? Thirteen percent (13%) indicated ?Worse.?

    Source: http://www.askthecollective.org/recession.html

    There is also more research coming out soon related to concierge medicine, its use with health care technology by The Concierge Medicine Research Collective (or 'the Collective). I read about this last night on Twitter. See www.askthecollective.com.

    I think we will see more and more franchising of the Minute Clinic models in the future. Why is that when insurance is involved, the costs are astronomical and you have NO IDEA what the ending bill will look like. Minute Clinics and concierge medicine are no longer considered elitist. They simple 'value-menu' a doctors services. It's nice to know how much my physical will cost as well as how much my flu vaccine will be. Concierge medicine and the minute clinic concepts are so simple that people just can't get their head wrapped around the 'simplicity.' We've become accustomed to complicated insurance and these 'concierge' style practices, whether at Walgreens, WalMart, on the net or what not are a breath of fresh air.

  •  
    5

    DanaBlankenhorn

    02/03/10 | Report as spam

    Concierge medicine and urgent care

    Getting employers to pay for concierge coverage is the key to rapid sales growth. IT can then be incorporated into insurance policies, and you have that pot of "wellness money" everyone needs taken care of.

    Part of the problem is that what goes into that pot varies with age. I need to visit my doctor twice a year, to keep up with my meds. I need blood work done each time.

    Someone in their 20s needs to be developing healthy habits with that wellness money. There should be enough in the pot to subsidize health clubs and other activities that promote healthy lifestyles.

    Unfortunately the present concierge business model only covers what I need, not what younger people need.

    And as to urgent care, having some of that be on a low deductible when you use a designated chain (or set of chains) is something I have no objection to. That pushes more basic care toward PAs and nurses, which is something that has to happen if we're to reduce costs.

  •  
    6

    JohnMcGrew@...

    02/04/10 | Report as spam

    Imagine that!

    An efficient market-based, low cost, non-centrally-planned solution to a real problem. Who knew people would respond to something like that?

    And the majority of people I've seen at local MinuteClinics are hardly what I'd consider upper middle class. That idea is just another example of your elitist-progressive biases.

    What this really is about is beginning of the idea that it is possible to wean people of the idea that every aspect of their care is the responsibility of their employer or the government. And I hope these people get very rich promoting this.

  •  
    7

    sdunn2000@...

    02/04/10 | Report as spam

    1/6th of the economy...is that enough?

    Health care takes 1/6th of the economy, increasing costs for everyone. Yet,
    the health care industry is the biggest proponent of the status quo. They
    seem to want everyone else to adjust to their rising costs.

    I find it curious that few are willing to discuss the potential benefits of
    globalization with respect to health care. Oh sure, free trade is just great for
    cars, clothes electronics and even IT. But free trade and health care are hardly
    mentioned in the same paragraph together.

    Clearly, in the context of international trade, health care has become a
    protected industry, free of the competition so prevalent in nearly all other
    sectors of our economy. What makes this industry so special? I fear we may
    be creating a privileged class, one that is increasingly becoming immune from
    competition.

    I like Dean Baker's idea of globaiizing health care. Make the health care
    compete with other countries. If it works for other industries, there's little
    reason why it will not work for health care. You can read about it here:

    http://www.counterpunch.org/baker08042009.html

    Hopefully, the press will become more willing to discuss the elephant in the
    living room.

  •  
    8

    DanaBlankenhorn

    02/09/10 | Report as spam

    sdunn2000@...

    At ZDNet Healthcare I have done a number of stories on medical tourism, where people travel to other countries to get procedures at a fraction of the cost of having them done here.

    The main reason for the disparity is that people make less. Doctors make less, nurses make less, everyone makes less. They're good doctors and good nurses -- many have care that are up to USA standards -- but they make less money.

    The present private system of health care takes up 17% of our GDP. Canada's national health care system takes 11%. Other people pay even less. And everyone is covered.

    Those on the right who claim our way is the best way are wrong on the facts and as ideologically rigid as any follower of Joe Stalin or Mao Zedong ever was.

    Such ideology is highly destructive. We saw, for 8 years, what adherence to ideology over facts results in. Going back will turn us into Argentina.

  •  
    9

    JohnMcGrew@...

    02/11/10 | Report as spam

    Speaking of "medical tourism"...

    ...how about the premier of Newfoundland and Labrador, the latest of a long stream of Canadian VIPs heading south from the country with free health care to the one with unaffordable health care?

    http://www.torontosun.com/news/canada/2010/02/03/12722956.html

    So why does this keep happening? Is it quality, availability, or just the fact that under a government-run system, only the wealthy and/or well-connected will be entitled to both?

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Dana Blankenhorn

Dana Blankenhorn has been a business journalist for nearly 25 years and has covered the online world professionally since 1985. He founded the Interactive Age Daily for CMP Media, and has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement, and dozens of other publications over the years.

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.
Rethinking Healthcare examines innovation in the health care industry covering topics such as electronic and personal health records, treatment, privacy, regulation and using information technology to manage and monitor chronic conditions.