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Verizon’s lessons for healthcare

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Kenneth Kaufman, chairman of  Kaufman, Hall & Associates LLC, discusses Verizon as an example of how a large organization, facing  intense technological, social and economic disruption,  can use its legacy strength to stay viable.

Mr. Kaufman said that the “telecommunications and media industry has notable parallels with health care. In many regions, the hospital market is saturated, increasingly leading to commoditization and competition based on price. Skinny bundles {of services like those newly being offered by  an increasingly nimble Verizon] are a familiar concept in health care, with payers and employers developing narrow networks of providers that are able to deliver high quality at low prices. In health care as in cable TV, consumers are showing dissatisfaction with high costs and lack of flexibility by going over the top of traditional health care organizations and accessing care from sources such as retail pharmacy clinics and telehealth companies.”

“….Verizon’s actions show that when a strong organization recognizes a changing environment, commits itself to being a major force in that environment, and is willing to disrupt the status quo, legacy status can be a tool for continued relevance.”


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