Is Business Broken? Why is Healthcare Not Better and Cheaper?
Mar 20, 2025
In this engaging discussion, Jim Rebitzer, a Professor at BU Questrom School of Business, and his brother Bob Rebitzer from Manatt Health, tackle the slow pace of healthcare innovation. They explore how financial incentives stifle progress and highlight a unique gait-altering technique as a solution to knee surgery. The conversation delves into social values influencing healthcare advancements, critiques the patent system, and suggests innovative funding models for pharmaceuticals. Their insights illuminate the urgent need for systemic reform in the industry.
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Innovation Incentives Misdirected
- Making money from low-value healthcare innovations is easier than from innovations that reduce costs.
- Financial incentives, professional norms, and incumbent reluctance collectively hinder valuable innovation.
Knee Gait Training Case
- An engineering professor's gait training could reduce knee replacement surgeries and costs.
- No clear customer exists because orthopedic surgeons, health systems, and payers each face conflicting incentives.
Reluctant Incumbents Slow Innovation
- Transformative innovations face resistance due to switchover disruptions impacting ongoing operations.
- Successful adoption depends on minimizing disruption and competitive pressures reducing incumbents' reluctance.