Handbook of Healthcare Management
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Handbook of Healthcare Management

Edited by Myron D. Fottler, Donna Malvey and Donna J. Slovensky

The Handbook of Healthcare Management is a comprehensive examination of key management practices for global healthcare organizations, arguing that insight into and implementation of these practices is essential for success and sustainability.
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Chapter 13: Innovations in healthcare delivery

Donna Malvey, Alicia Beardsley, Hannah Nguyen and Myron D. Fottler


In the United States, innovation is one of top industry issues facing healthcare executives, and healthcare organizations (HCOs) will need to accelerate the pace of innovation to meet the shifting expectations for value, convenience, and patient engagement. Innovation represents both promise and trepidation. It is how providers, payers, and patients expect to become more efficient. Innovation is also perceived as essential to achieving increased access and enhanced quality at lower costs. Because consumers are increasingly using innovative technologies to communicate with their providers, from e-mails to mobile health applications, they also anticipate further development of healthcare innovations. But according to an extensive study by PWC Health Research Institute (2014), few healthcare companies in the US are managing innovation for maximum efficiency and breakthrough results. This finding is troublesome, given the fact that public sector dollars are becoming increasingly scarce and there is increased competition from those outside the industry. Innovation requires different skill sets than those of managing the organization’s routine day-to-day activities. Peter Drucker, often referred to as the “Father of Modern Management Science,” early on recognized that one of the greatest challenges for any organization is to manage the consequences and implications of a future which has already occurred. According to Drucker, “Knowledge constantly makes itself obsolete; with the result that today’s advanced knowledge is tomorrow’s ignorance” (Drucker et al., 1997, p. 22).

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