Health System Innovation

Updated: Aug 12, 2020

Health Systems Innovation
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Healthcare is at once the most personal of human experiences and the largest and most complex industry on the planet; one whose considerations span all the way from the molecular to the scale of humanity. It affects and is affected by all aspects of society and economy from the food we eat, to the materials we make, to how we design our built environment. Health systems cross the divide from science to management incorporating the study of medicine and diseases, epidemiology and the management of public health.

How we construct our model for understanding this complexity – not just what health itself is but also the institutional frameworks we use to organize health systems – defines the kinds of solutions we can derive. These models come to define what exactly is the problem we are trying to solve and how we should go about trying to build and operate health systems to meet those challenges. Throughout history, the health equation has evolved with societal changes. Over the course of centuries, our understanding of health has evolved from the spiritual realm to being grounded in the realm of scientific materialism. Out of our newly found knowledge of the physical world that the scientific revolution brought and the new institutional paradigm of the industrial age we built the modern health systems we inherit today as over the course of the 20th century a standardized model for health systems solidified.

With the institutional framework of the nation-state, a set of centralized formal institutions coalesced as a standardized solution for managing the health of populations around the world. Under the guidance of government bureaucracies, diseases were cured and even eradicated as advances in science and the incentive structures of the free market drove incredible progressions in medicine and medical technologies. National health care plans developed to pay for health care with some countries even achieving universal health care. But by the turn of the 21st century, our industrialized health systems are facing a new and complex set of challenges. Internally their heavy dependence upon a reductionist centralized approach in design has resulted in fractured and highly complicated systems; that are becoming overbearingly costly to operate while failing to deliver the outcomes society desires. Externally the world is changing in profound ways; the social, cultural, economic and technological environment within which we design and operate health systems is changing fast, placing requirements on those systems to adapt and evolve new structures, capabilities, and capacities.

The health equation is becoming more complex along many dimensions, in response new thinking, models and approaches to managing health systems from the local to the global are much needed; the same thinking that created the centralized health systems of today will not solve for the problems they have created and this changing context. The health systems of today are a classic illustration of both the achievements and limitations of a reductionist thinking. The analytical approach has made many advancements over the modern era, but with the ever-evolving complexity of today’s health systems linear models that focus on component parts are blinding us to the real systems-level innovations that are needed to move forward.

We focus on parts getting ever more analytical, hoping that the cure to aging or obesity is down there somewhere, in some gene or molecule and with the best of intentions we pursue that dream with billions of dollars, whilst being blinded to the networks of horizontal connections and overall environment within which human health exists. We invest billions in high-tech medical solutions and specialized doctors to use them when the solution to the patients’ problem may have just required the doctor to listen a little bit more closely. The emergent unintended consequences of the analytical approach are everywhere to be seen; health systems are populated with people with good intentions that lead to undesired outcomes because of the structure of the system and the structures of incentives that are acting on agents in the system. Massive amounts of resources, intelligence, hard work, and aspirations go into the development and maintenance of today’s health systems while society often describes them as being “broken” how can this be?

The reductionist centralized approach only ever scales so far before starting to grind to a holt in the face of the complexity that it is not able to harness. A distributed model to health systems can go beyond that to harness that complexity, to tap into the full resources in the system. The challenge for us today is not to do things faster, more efficiently and larger than we did them before, it is to think and operate differently, to embrace the complexity of a distributed network model to health systems. Moving to a distributed network model though requires a deep re-architecting of health systems. On the more theoretical side, we need to understand the essentials of what health systems are – how they work in the abstract – coupling this with an understanding of how our existing systems have evolved into their specific current form; really breaking ground will require a full 360 degree integrated analysis of the current context today. On the design side of the process, we need a deep understanding of the current structures to these systems and how that structure should evolve to respond to current requirements.  Finally, we need to understand the new technological means that we have and how those means can be appropriately applied to realize this evolution in healthcare systems.

This paper explores how we can use systems thinking to reimagine and redesign health systems in an age of information. To move beyond our traditional analytical reductionist thinking to health systems so as to talk about networks that cross boundaries and whole systems. To move from a world of fractured centralized systems to open platforms; shifting the locus from closed organizations to one that is centered around the individual; from arguing about the cost of service delivery to aligning incentives towards real value and outcomes; from static organizations to dynamic health networks; from reactive to preemptive; from a focus on the specific parts of the formal health system to the whole context within which health is maintained and realized. Not only do we need new ways of thinking about health and new approaches to managing health systems but more than this we need to realize these new approaches through technology. In the coming decades’ powerful new technologies of the blockchain and advanced analytics are set to reshape virtually every aspect of society and economy, how can we use these technologies as a medium to realize new ideas and approaches, to build health systems that are qualitatively better in outcomes than the ones we inherit.

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