Ah, self-help books. Some (well, most, really) are bad. A
long time ago I read Covey’s Seven Habits…and found it…well, I don’t really remember.
I’ll re-read it I suppose. I also picked up a copy of Getting Things Done,
by David Allen and found that to be a mere echo of what I was already doing
(lists!). Back in my days at Haarmann & Reimer, a German-based flavor and
fragrance company now merged with Dragoco, another f&f company based also
out of Holzminden, Germany, and renamed Symrise, one of the big bosses gave me
a copy of Tom Peters’ The Pursuit of Wow! It was great. This book is not too
dissimilar. Peters leans on the “soft” side of organizational things. Heavy
emphasis on “thank you” notes and managing by walking around and being a
people-person. He gives examples of practical ways to be better at these things.
The structure of the book, while probably off-putting to a lot of people, I
found to be a welcome distraction and probably contributed to my ability to
read the whole thing. He changes font size, bolds text, has anecdotal stuff in
boxes, one word sentences taking up entire lines, and so forth. Like I said, it
won’t be for everyone. I read this in the bathroom – Peters won’t mind, he
suggests that you do it. Cheers.
Saturday, January 19, 2013
Monday, January 14, 2013
The Innovator's Prescription, by Clayton Christensen
Healthcare in the U.S. accounts for approximately 18% of
GDP, a rate significantly higher than that seen in other western countries.
Outcomes in the U.S. seem to be, at best, equal if not worse than most of these
countries. However, studies of outcomes are complicated by confounding factors
and difficult to interpret. Nevertheless, the burden of healthcare costs in
America is high and increasing. Christensen’s book offers a solution for both
the increasing costs and the inconsistent quality of our care. He is an
economist who has studied industries including computers, telecommunications
and steel, among others. His co-authors are both physicians. From a
business-model perspective, he divides healthcare delivery into three entities.
The first is care delivery centered around well-defined diseases and paths to
treatment and cure. Diseases like ear infections or pneumonia or appendicitis.
In these cases, path to treatment and, presumptively, cure is well-established.
In such cases, providers should be compensated based on outcome. Providers that
wish to treat patients for these disorders (hospitals, urgent care centers,
clinics, etc.) would be well-served to concentrate on their “processes” to
improve their bottom-line. From a business/operations management perspective,
well-defined processes that yield consistent and measurable outcomes have their
value in the “process” itself – the better (faster, cheaper) the process, the
more profitable the organization will be. The second entity is activity
surrounding the diagnostic workup of patients. In these cases, before the
patient has a diagnosis, the value rests in the resources of the organization
doing the “problem solving” – resources like the capabilities (knowledge, etc.)
of physicians, diagnostic machinery, etc. The value here is not the process for
finding a diagnosis, but, rather, in the practitioners and other resources
within the organization. Christensen calls these entities “solution shops” and
suggests that the best way to compensate them for their work is on a fee for
service (not unlike that which currently exists). The third entity/business model is centered
around patients with chronic illness for which the patient has been diagnosed
and is receiving care but there is no cure and regular maintenance and
follow-up is required (diabetes, rheumatologic disorders, congestive heart
failure, asthma, e.g.). For these patients, a network of support that involves
other patients, non-physician support staff and care providers is optimal for
maximizing their health and outcomes. In this case, a membership-fee type
compensation structure is best.
Christensen’s work is centered around a concept of “disruption.”
His basic argument is that “disruptive” technologies emerge that allow
competitors to enter (or create) markets where industry leaders previously
didn’t compete (for low profitability reasons, usually). As these new competitors
build expertise, they move upmarket and slowly erode the industry leaders’
market, eventually supplanting them. Examples abound and he talks a little
about the steel, electronics, computer and education industries in this book;
he’s written other books entirely on this subject. To me, the most interesting
part of his discussion on “disruption” is the organization dynamic that
prevents most market leaders from re-organizing in order to compete with the
new competitors/technologies. He also identifies the components necessary to
enable disruption – a new technology (or application thereof), a cost-effective
(usually low-cost) business model and infrastructure necessary to supply the
new business entity (new technologies and business models cannot “plug and play”
into the old business model – or else risk failure). Whenever possible (and it
is often), the author cites examples from healthcare.
After Christensen argues that medicine is really three
different types of businesses/operations and outlines his vision of “disruption,”
he postulates that each will try to disrupt the other (or new entities will
emerge that will do the disrupting). For example, as organizations that work in
the first (process-oriented) model take patients from the traditional physician
office, those “traditional” physicians will begin to develop ways to take
business from the “solution shops” – examples abound (ultrasound equipment in
cardiologists offices, point of care lab testing devices in family doctors’
offices, etc.) – in those cases, the primary care physician becomes a “solution
shop” and is paid on a fee for service basis instead.
Healthcare is complicated by a non-market driven (my
opinion) compensation system (the Centers for Medicare and Medicaid Services,
CMS, sets the pricing for services and the insurance companies fall in line). Most
everything is paid for on a “fee for service” basis, much of which is
independent of outcomes. The more “stuff” that a doctor does, the more he/she
gets paid (as long as that “stuff” is on the fee schedule). This means more
interventions (not fewer) and only those interventions that can get
compensated. Who are we to blame? Not the physicians – they are acting as
anyone else would in a similar situation - they are incentivized to do those
things which provide the most compensation.
One model for a new payment system is a single payment for
each patient for all future care.
Providers of care for that patient will have to work within a fixed payment
stream. The more efficiently they provide service, the more money they will
make. Where are the incentives now? To provide less care (naturally, outcomes
will also be monitored in order to prevent abuse). Which organizations will
profit most? Those that are integrated and can organize their internal
operations to move patients through in an efficient, cost-effective,
high-quality manner. This means that surgeons, internal medicine doctors,
radiologists, pathologists, nurses, etc.) will all be part of the same
organization. Accountable Care Organizations may be able to get this done.
Christensen also tackles the medical education system,
pharmaceuticals (a very interesting section, indeed) and medical devices. The
book is well-written, accessible and persuasive. In addition to discussing the
myriad problems in our health system, it offers a path for a solution. If you
are interested in the state of affairs of the U.S. healthcare system in the
early 21st century and wish to learn a little about Christensen’s vision
of “disruption,” then this book is for you.
Friday, December 21, 2012
Life of Pi, by Yann Martel
Another book just lying around the house, as if it had
volition of its own, waiting to be read. Someone had placed a copy on the end
table in our guest bedroom which doubles as an office for me. I had just
finished that le Carré novel and picked up Pi. Channeling those ancient Greek
philosophers I’ll try to define the book by what it is not. It is not
superlatively written and it is not full of revolutionary ideas. But that
hardly goes anywhere. It is, however, an accessible, easy read with lots of
humor. It has a spiritual and philosophic edge as any story might that narrates
a teenage boy surviving at sea in a 20 foot lifeboat with a 500 pound untamed
bengal tiger. As improbable as that situation sounds, it makes for great
suspense. By far the most entertaining and interesting part of the story is the
unfolding of how Pi manages to survive the initial onslaught of storm and
instability of the tiger/hyena/zebra/orangutan dynamic aboard the lifeboat and
the subsequent détente between tiger and boy. As a guide for life, the tale may
fall short for many. But for others, it may serve as a compass for a deeper,
more enriching way to live. I suppose that is up to you to decide. That being
said, it’s a fun read and not terribly professorial; a little bit for everybody.
As an aside, I tried to see the Ang Lee film adaptation in Florida while
visiting my father and the theater lost power halfway through - about 10 minutes after the ship sank; I
haven’t seen the rest. Probably not a film for little kids (I have a six year
old boy and won’t take him). The first 40 minutes or so are quite slow and a
little kid would probably fidget too much (unless you gave them Benadryl, which
I don’t advise as a physician, unless they are having an allergic reaction to
something).
Monday, November 26, 2012
A Most Wanted Man, by John le Carré
About
18 months ago I read Our Kind of Traitor by le Carré and feel similarly about this novel.
Certainly not one of his best even of his post – Cold War era books (echoing
that former post). I am especially disappointed by the reviews that it got, or
seemed to by the blurbs that decorate the book’s cover, back cover and inside
pages. The New York Times Book Review, for example, writes, “This is le CarrĂ©’s
strongest, most powerful novel…One of the best he’s ever written.” Really? Now,
that is not the entire review and admittedly I have not read the review. Anything
written by him prior to 1985 is superior. And that’s for starters. Another, even
greater disappointment is the lack of character development. Weak when compared
to his prior works. And the writing is bland and unexciting; felt like I was
reading one of those pop thriller/espionage writers. OK. Enough – that is
plenty of digital space spent on this novel.
Monday, October 1, 2012
Oblivion, by David Foster Wallace
It’s probably because I am a parent that I was so
traumatized by Wallace’s shortest in this collection of short stories.
Incarnations of Burned Children left a hollow feeling in me for days that I
still cannot shake entirely. And I thought what else lays in store for me if I
continue to read this collection. I went back to it. I thought well, it can’t
get any worse than that. And I am glad that I did – the stories that followed
are exceptional reads. All are quite good and a few are noteworthy for this
brief space. “Oblivion” presents the conflict between a man and wife over his
snoring. He insists that he is not snoring, that he is in fact wide awake when
she routinely awakens and yells at him in the middle of the night. She insists
that he is snoring and is in denial. We are narrated by the husband and the
backdrop to the story is the wife’s family and the relationship between the man
and his in-laws. The end is sudden and surprising. Another fine read is about a
man who is preparing to kill himself. He goes to great trouble to narrate his “fraudulence”
– why he is a fraud, when he learned that he was one (age 4, I recall?) and how
it has impacted his relationships (with his girlfriends, psychiatrist) and with
the world at large. These long, self-insightful passages reminded me passingly
of Dostoevsky’s short story “Notes from the Underground,” one I couldn’t finish
reading, where a misanthrope goes on and on about his not so positive relationship
with people and the world. Wallace’s is a moody, but surprisingly uplifting,
tale. The long narrative musings on time and what
happens after death are brilliantly paced, atmospheric and tightly written. The
name has “Neon” in it – cannot recall the complete title. The last story that I
should mention is the “The Suffering Channel.” A great, galloping ride down
modern America’s obsession with entertainment (echoing a theme from Infinite
Jest) and fashion. Satirical and dark. Capturing the wonder of Wallace’s
writing is an impossible task, you just have to read it for yourself. A review
of this collection stated something like, “reading Wallace is like listening to
the best kind of rock band” – that about sums it up.
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