Businesses in healthcare are facing a problem. In such a diverse, complicated and innovative field, determining how to pursue growth can be overwhelming. From political influences and new technologies to cultural changes and economic shifts, where to spend your resources is a challenging question. The problem lies in considering all aspects of the industry simultaneously. Businesses are attempting to react to all the changes, opportunities and competitors in the industry. But taking too wide a view is leading to muddled solutions and slow progress.
The solution lies in narrowing our focus on just a few aspects of healthcare to understand where the tide of change is turning. In this three-part series, we hope to explore new perspectives on existing structures and innovative approaches that are redefining the system. By focusing our attention on singular aspects of the market we will discover that opportunities for growth are highly achievable.
To start let’s look at an oft under-considered player in the field: blood.
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Radiolab recently highlighted the complexities and surprising realities of the blood industry. What does it mean when a pint of freely donated blood can cost up to $300 by the time it reaches the patient?
It means we need to rethink healthcare. We should imagine the blood industry as a microcosm of the larger system, with a diverse number of stakeholders and intimate connections with a concerned public.
The story of blood goes back, well, as far as the story of civilization. The earliest market for blood in the United States consisted of volunteer donors and paid donation services. By the late 1970s paid donations ended due to the attraction of “unsavory donors.” What were sometimes called “booze for ooze” programs, many donors were more interested in cash to support habits than donating quality blood. Altruistic donors, however, produced a more dependable product.
Since the end of paid donation, the blood industry has grown into a 2-4 billion dollar business in America. Additionally, The American Red Cross owns 44% of the market, with the rest of the industry held by blood banks scattered across the country. These banks receive donated blood and then sell it to area hospitals. Over the years, supply chains haven’t changed much – hospitals still rely on just one or two local vendors for their entire blood supply. Due to this historic lack of competition, prices per pint vary widely across the country. Two hospitals located just down the street from each other can have differences in price by almost $100.
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The industry can only grow by solving for these inefficiencies.
Consider General Blood. As a distribution company, their collection processes don’t tap the veins of donors but the surpluses of blood banks. General Blood purchases surpluses from banks and distributes to those hospitals that need it most. This enables General Blood to offer balanced prices in regions with limited blood vendors – reducing waste, increasing efficiency and instilling competition.
The ever-evolving tech space offers businesses another area for evolution. Sharp Laboratories in Oxford, England is developing a revolutionary device. Their scientists apply microscopic electronics to small amounts of blood in order to perform complex bio-chemical tests. It’s changing the game towards faster, more mobile blood testing. This innovative microfluidic process is contained in a device that fits the palm and can travel easily. It dramatically changes current standards for testing blood, which is historically time-consuming and confined to testing centers. Through collaborations with companies like Sharp, distributors, storage companies and hospitals can reimagine the possibilities for the industry. Hospitals could establish permanent donation and testing locations on site. Storage and distribution companies could test blood on-the-go, reducing the risk of contaminations discovered at the bedside. These businesses could think creatively to connect their strengths to realize smarter, profitable solutions.
Another great opportunity for innovation is higher donor engagement. Leveraging the connected world of social channels, blood businesses could engage with donors in interesting ways. From education around donation to storytelling about the impact of blood products, brands within the industry have the opportunity to attract and maintain meaningful relationships with their altruistic base.
While the blood market is just one player within the healthcare industry, these revolutionary problem-solvers illuminate the opportunities for other businesses to raise the stakes. Waiting for change to come isn’t the way to run a business. Inspired and actionable solutions that enable immediate change offer the possibility for growth in a fluctuating market. Mending inefficiencies, exploring high-tech partnerships and engaging with your base are just a few ways you can inspire your thinking from blood.
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Prophet is a strategic brand and marketing consultancy. We leverage our cross-industry experience with global brands to deliver inspired and actionable ideas that help our healthcare clients win in the marketplace. For more, visit www.prophet.com/healthcare.
