A Tale of Two Systems

almost 2 years ago

To create real and lasting change, we must question our fundamental assumptions.

The work of Curandi is to transform healthcare into a living system that works. Today, we manage healthcare with industrial-age ideas. To show how things might be different, this article compares the consequences of traditional healthcare management with the way products of the information and communications systems are delivered.

The two delivery systems have a lot in common. Both are Complex Adaptive Systems. Both are knowledge industries that offer services. Both depend on significant scientific and technological advances. Both use the same computing, networking, and communication tools and technology. But the big, significant difference is the way they put those tools use, as shown in Figure 1.

Figure 1
HealthcareInformation and Communications Systems
Financial alignmentProduct alignment
Hub-and-Spoke networksOpen connectivity
Centralized controlSelf-organization
Optimal process to achieve standardMaximize product to serve customer
Central knowledge managementDistributed knowledge and innovation
Work to limit demands of usersUnlimited demand from customers
Control practitionersSupport knowledge workers and innovation
Formula-based pricingMarket-based pricing

And thus, what they create is decidedly different.

Figure 2
HealthcareInformation and Communications Systems
Most expensive healthcare in the worldMore value at same or lower cost
#1 category of inflation beginning in 1990sInflation falls below CPI
#1 cause of personal bankruptcyCreated 20% of new GDP growth
Suppress wage growth for key populationBy 2011, Information Systems = 4.6 % GDP
Suppress economic recovery for the nationNew products and new markets

Figures 3 and 4 are data from the St Louis Federal Reserve and shows the inflation indexes for healthcare on the left and information and communication systems on the right. Healthcare was the highest category of inflation while information systems and communication dropped below CPI. This is no accident.

Industrial-Age Model

Management trying to control Complexity

Figure 3: A system of constraint and limits creating sustained inflation

Curandi Model

Management embracing Complexity

Figure 4: An engine of growth and productivity producing inflation below CPI

The Curandi Model™ will improve care and lower cost by changing system and business models to embrace the reality that healthcare is a Complex Adaptive System. This is a focus on people, purpose, and systems that adapts to the needs of the patient. 

Meaningful change in healthcare is coming either way; our current path is not sustainable. Changing to the Curandi model will dramatically “up our game”. 

Learn about Curandi. Join a movement that will incrementally transform silos of cost and constraint to natural systems of abundance.