Homebased healthcare : issues and challenges

Abstract

Healthcare costs in United States are projected to rise to 20% of GDP by 2015. This is a cause of major concern and current political debate. The largest contributor to this cost is the hospital cost accounting for 30 % to the healthcare expenditure. Segmenting healthcare through new delivery mechanisms may be an answer to the rising cost. Disruptive innovations like Retail clinic's is a prime example of this segmentation providing patients increased convenience at a reduced cost. This thesis presents the case of evolving Homebased healthcare as an alternative segment for healthcare with the objective that it would reduce the costs of healthcare by early monitoring, diagnosis and treatment of disease, a paradigm on which preventive healthcare is based. Synthesizing the information and research available this thesis proposes key elements of Homebased healthcare using which a model for Homebased healthcare is derived. Technology is discussed as a key enabler and a discussion is made regarding some of the current trends in evolving technology. Applying some lessons learned from other industry in high technology sector, this thesis then comment on the supply chain challenges arising due to homebased healthcare model.