modelH is a business model canvas designed specifically for healthcare. The modelH canvas creates a common language for describing, visualizing, assessing and changing the key elements of every healthcare business model. It is complex enough to evaluate an entire business model, but simple enough for all parts of the paradigm to be understood.
modelH was developed by Kevin Riley & Associates for www.modelH.org This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/. The following resources are available for download and use.
What is the problem we are trying to solve?
The healthcare “ecosystem” in its basic form operates along 3 themes: care consumption, care delivery, and care financing . These domains are actually interdependent points of interaction along a value chain of healthcare. To impact one point, you really impact them all. Make no mistake – healthcare is a business! The problem is that very few people create business models that are considerate of all three points of view – and certainly no one has come up with a framework to make this easier.
In addition, across the value chain of healthcare, there are four key stakeholders: patients, providers, payers, and purveyors . To put it in simple terms, the party who consumes the product of healthcare (the “patient”) is usually not the one who pays for it, or at least not most of it. The party that pays for it (the “payer”) is best served when it is not used, and is therefore motivated to push for less of it. Furthermore, the parties that deliver it (the “provider”), and the parties that support its delivery (the “purveyor”), are not aligned to place realistic boundaries on its cost, thus forcing the system into bankruptcy. Due to its divided nature, the ecosystem is overrun with inefficiencies and creates dis-incentives across themes and between stakeholders so that each maximizes their own value, often at the expense of the others.
But the system is not so much broken as made up of working parts not working together. Our diagnosis of the problem is misalignment of the ecosystem’s building blocks. Our prescription is to reset these building blocks into a better working order. The outcome will be a healthy and aligned ecosystem that is both market-driven and cost conscious.
How do we solve the problem?
The modelH team believes the ecosystem can be fixed! The answer lies in aligning the business model so all stakeholders share an understanding of “value” across the themes of consumption, delivery, and financing. Our definition of value is based on that of Michael Porter, put forth in his paper entitled What is Value in Health Care?. Value in healthcare is measured as the patient health outcome achieved per healthcare dollar spent. A better healthcare business model must then result in:
- Improved consumer experience yielding an informed decision maker aligned to their risk and reward;
- Increased access to necessary care through an engaged delivery system; and
- Reduced aggregate cost of care, with a market-driven, balanced incentive and reward model.
modelH Business Model Canvas
The modelH business model canvas in image format.
The modelH business model canvas in frame format.
modelH Business Model Canvas Overview
A text overview of the modelH canvas.
modelH Business Model How to Use the Canvas
A text guide to help business builders define their specific business model through the various lenses of the modelH canvas.
modelH Canvas Creator (Abizmo)
You can now create an online modelH canvas on Abizmo. Abizmo is the best tool to create your Business Model Canvas and collaborate with your team. It takes less than a minute to start using it. Click the image to try it for yourself.