Innovative players shaping care delivery competition

    Hospitals, health systems, and physician groups face threats of disruption on several fronts. Long-standing industry pressures—unsustainable cost trends and shifting consumer expectations—have not abated, which has attracted the attention of out-of-industry companies and private equity-backed entrepreneurs who bring new solutions to bear. New competitors see opportunities to rebuild the delivery system from the ground up, pioneer new business models, and push the boundaries of clinical and technological innovation. Many are driven by a limited strategic focus that is quickly adaptable to market shocks, enabling them to outmaneuver incumbents who have too many strategic directions and maintain a risk-averse culture to transformational change.

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