Reposting a thoughtful and objective article from Dr. William Kurtz to explain why healthcare has not invested in improving the patient experience, by looking at commoditization, market forces, value creation and value capture.
Link to Dr. Kurtz blog - https://www.nashvillejointreplacement.com/obr/value
Orthopedic Business Review
written by Will Kurtz, M.D.August 19, 2022Warning: TLDR
This OBR article will discuss commoditization, market forces, value capture, and value creation. Using these terms, we are going to evaluate orthopedic decisions and discuss how these decisions might affect the future of orthopedics and digital therapeutic (DTx) MSK companies.
Commoditization
We have to acknowledge a painful fact about orthopedics today. Orthopedic surgeons have been commoditized.
Picture created with AI from Dalle
Orthopedic surgeons are like flat screen TV; we continue to create more value every year, only to get paid less for it. The 30 year deflationary rate is 98% for TVs and 66% for total knee replacements. Both have drastically improved quality over this time period.
Average Cost of Television in US cities
Medicare Fee Schedule for TKA and THA from 1990 to 2020
The commoditi...
