27
Sep 09

Retail clinics & the ‘Good Enough’ Revolution

In the wake of Robert Capps’ Wired piece on the Good Enough Revolution, the September 21 NY Times Idea of The Day noted that “cheap, fast, simple tools are suddenly everywhere”, referenced Capps’ observation that they’re being used in healthcare by “digitally connected microclinics”*, and dismissed with faint attention Michael Masnick’s Techdirt critique.

Masnick says (with our emphases) that

[T]he concept of “good enough” misses the point — and the real issue is that the actual quality is in those other characteristics that he discusses. The real problem is that some start to focus on the “quality” of some aspect of the product, rather than the quality of meeting what the consumer wants ….The people who create [products and services] almost always assume that the most important attributes are the product itself, rather than the convenience it provides users.

Our feeling is that Masnick is in greater agreement with Capps than he realizes, but merely lacks the conceptual vocabulary to make the connection. With respect to health care, Jason Hwang & Clayton Christensen help, in The Innovators Prescription, with their notion of the consumer’s “job to be done” (pp. 10-11, specifically regarding clinics at p. 112, and throughout the book).

In a way, Capps himself contributes, in his remarks about the Kaiser microclinics:

Two doctors working out of a microclinic could meet 80 percent of a typical patient’s needs. With a hi-def video conferencing add-on, members could even link to a nearby hospital for a quick consult with a specialist. Patients would still need to travel to a full-size facility for major trauma, surgery, or access to expensive diagnostic equipment, but those are situations that arise infrequently.

If that 80 percent number rings a bell, it’s because of the famous Pareto principle, also known as the 80/20 rule. And it happens to be a recurring theme in Good Enough products. You can think of it this way: 20 percent of the effort, features, or investment often delivers 80 percent of the value to consumers. That means you can drastically simplify a product or service in order to make it more accessible and still keep 80 percent of what users want—making it Good Enough—which is exactly what Kaiser did.

But Capps has it just 20% wrong (okay, maybe less than 20%). 20% of the effort, features, or investment delivers 100% or more of the value to 80% (or some other big percentage) of consumers. It does the job they need to have done – 100% of that job. The other 20% (or whatever actual fraction) of consumers simply have a different job they need to have done.

Kaiser’s clinics are exactly good enough for what a large share of their visitors need, for the job they need to have done (which can be labeled a ‘health care’ job – but in a substantial number of cases could probably accurately be labeled something else).

We strongly believe that a ‘Good Enough’ revolution is just what US health care needs more of – even if, as we’ve seen here, that term may not precisely describe what it is we’re talking about.

*(The Times piece errantly attributes the observation to Shirky, rather than Capps, who employs it in his Wired article.)


17
Sep 09

Retail clinics “A Surprise To Many”

We enjoyed this article from the northern Ohio News Herald:

A Surprise To Many, Walk-in Clinic Inside Drugstore Looks to Fill a Need

“I worked for Mentor Police Department for 20 years and have lived around here even longer but never knew that clinic existed,” said [retired Mentor, OH police officer Noah] Thomas, who lives in Concord….”

We feel the article, and especially Officer Thomas’s remark, captures the need that Healthcare 311 addresses. If a career policeman can miss the introduction of a new health care business in his community, what chance do the rest of us have to be aware of local clinic options without reliable help?


02
Sep 09

Concentrating on the Concentration of Health Spending

A word about our obsessions.

Here at Healthcare 311, we have a thing for data on the concentration of US health spending. That data incontrovertibly shows that health spending is extremely unevenly distributed*. That means two things:

  • that is there is a vast difference between the amount spent on those who receive the most care and those who receive the least care, AND
  • the number of people on whose care the most is spent is much, much smaller than the number on whom little or nothing is spent. In fact, the number on whom little or nothing is spent is most of us.

There’s more in these documents from Kaiser Family Foundation & the Agency for Healthcare Research & Quality (also from AHRQ). While some of the data is several years old, the concentration of health spending has been relatively stable for decades, so the picture the data presents remains relevant.

These 3 sentences from the KKF document are illustrative (our emphases):

While discussions about the costs of health care often focus on the average amount spent per person, spending on health services is actually quite skewed. About ten percent of people account for 63% of spending on health services; 21% of health spending is for only 1% of the population. At the other end of the spectrum, the one-half of the population with the lowest health spending accounts for just over 3% of spending.

We know, we know: everyone knows these facts. What puzzles us is why knowing them does not have more impact on our thinking about how to fix health care.

Knowing them, and thinking about them a lot, we have come to believe that the easiest, most convenient way to “re-form” health care in the US is to focus relentlessly on

  • finding affordable ways to keep those of us in the “most of us” category healthy, so the amount we spend on our care does not grow much; AND
  • doing a better job of managing the large amount spent on the smallest share of the population that really needs resource-intensive care.

*we’re neither statisticians nor mathematicians, but we understand the extreme skew of health care costs over the US population describes what is known as a “power law distribution“.