TY  - JOUR
AU  - Cutler,David M.
TI  - Where Are The Health Care Entrepreneurs? The Failure of Organizational Innovation in Health Care
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16030
PY  - 2010
Y2  - May 2010
UR  - http://www.nber.org/papers/w16030
L1  - http://www.nber.org/papers/w16030.pdf
N1  - Author contact info:
David M. Cutler
Department of Economics
Harvard University
1875 Cambridge Street
Cambridge, MA  02138
Tel: 617/496-5216
Fax: 617/496-8951
E-Mail: dcutler@harvard.edu
M1  - published as David M. Cutler. "Where are the Health Care Entrepreneurs? The Failure of Organizational Innovation in Health Care," in Josh Lerner and Scott Stern, editors, "Innovation Policy and the Economy, Volume 11" University of Chicago Press (2010)

M3  - presented at "Innovation Policy and the Economy 2010", April 20, 2010
AB  - Medical care is characterized by enormous inefficiency.  Costs are higher and outcomes worse than almost all analyses of the industry suggest should occur.  In other industries characterized by inefficiency, efficient firms expand to take over the market, or new firms enter to eliminate inefficiencies.  This has not happened in medical care, however.  This paper explores the reasons for this failure of innovation.  I identify two factors as being particularly important in organizational stagnation: public insurance programs that are oriented to volume of care and not value, and inadequate information about quality of care.  Recent reforms have aspects that bear on these problems.
ER  -