What's your practice's Business Model?

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How do you decide on introducing a new technology to your practice? The cost is a concern and will it add value to your practice?

The healthcare industry is notorious for its slow adoption to new technologies. A recent Forbes report is listing the following 5 issues that are preventing technology adoption in healthcare:

  1. Many new technologies don’t address the real problem
  2. No one wants to pay for new technologies
  3. Physicians are reluctant to show patients their medical information
  4. Technology slows down many physicians
  5. Many physicians see technology as impersonal

The big question is, will new technology enhance your business model?

For me the real issue is: when does a new technology add value to my business or work. To make a decision on this, you need to understand how your practice or business creates, delivers and captures value. And what role will this technology play in this process.

To guide me through a decision I’m using the 9 basic building blocks of the business model canvas (feel free to consult the following book: Business Model Generation written by Alexander Osterwalder and Yves Pigneur):

1 - Any organization serves customers:

What customer segments are you focussing on and will this technology benefit your current customer segment(s)? Example: pediatrics, school children, athletes, the elderly or a patient group with a specific problem / disease.

2 - You satisfy a customer need with the value you add.

Your customers do have specific needs that you identified and solve. Does this technology assist you to improve outcome, lower cost, or increase satisfaction in solving the problem?

3 - Value is delivered through a channel.

You need to make your customers aware of your services and relative easy to “consume” it. Will this technology assist you with it? Example: if you perform physical assessment services outside your practice, will the new technology work, will it attract new clients?

4 - Relationships in healthcare is build on personal experiences and trust.

Will the new technology enhance the relationship with your patients? Is there still a personal touch involved?

5 - Revenue can come from more than one place.

Can you charge for the new technology? Is it possible to price your current services higher due to the new technology? Will the patient be willing to pay out of pocket for the extra service you provided. Can this technology attract customers that will consume additional services (loss-leader)?

6 - You use various resources to deliver services.

Will this technology become a key resource in your business? Do you need other resources to support this technology (IT or human)?

7 - You are trained to perform certain activities.

Do you need additional training to use the new technology? How well will it fit into the activities you are performing currently? How much time will this this technology consume?

8 - Some activities you perform in partnership with others.

Do you need to form special partnerships to implement the technology or service? Or can you leverage current or new partnerships? Example: When performing cardiac screenings, what added benefit could you get in forming a partnership with a cardiologist?

9 - There’s always a cost to running your practice.

There’s always an associated cost with every service you provide. Can you reduce fixed cost by paying for a service as you use it? Does the benefit (or value) of the new product outweigh the long term cost?

 

The next time you hesitate to procure a new technology, sit back and have a close look at your business model and ask yourself, “where will this add value to my business?”

Use our 9 Step Guide to determine how SensiCardiac will add value to you practice.

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