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The development of a viable business model in health care

Moen, Saskia (2006) The development of a viable business model in health care.

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Abstract:Within the Freeband User eXperience (FrUX) health care project a Dynamic Interactive Social Chart for DEMentia care (`DEM- DISC¿) is being developed. The aims are that the social chart enables users to find relevant customized and context sensitive packages of care to match their needs, resolve fragmentation issues and improve accessibility of health care and welfare. Due to the increase of the ageing population the number of persons with dementia will increase. The increase in the number of patients places the health care system in a situation where considerable challenges can be expected. Based on a study conducted by FrUX researchers to assess¿ needs of patients and informal carers it was concluded that patients need information on the diagnosis, their condition, support opportunities, support with memory problems and personal care appointments. Informal carers need information on diagnosis, prognosis, treatment, day care facilities, other services and both legal and financial issues. ICT seems applicable to provide information. A prototype of `DEM- DISC¿ is being developed (Dröes R. M., Meiland F. J. M. , van der Roest H. G., Maroccini R., Slagter R., Baida Z., Haaker T., Kartseva V., Hulstijn J., Schieman R., Akkermans H., Faber E., Tan Y.H., 2005). Market adoption of innovations is a difficult and complex process. This formed the reason for a study into viable business models for `DEM- DISC¿, which is the subject of this thesis. The main research question is: `Which organizational arrangement may lead to a viable business model for `DEM-DISC¿?¿ No theories exist on how to design business models in health care. An exploratory approach is required. The STOF model from the Freeband Business Blueprint Method (Haaker T., Oerlemans K., Steen M., de Vos H. 2004) will be applied in the study. The STOF model distinguishes four domains within a business model; a service domain, a financial domain, an organization domain and a technology domain. The four fields describe the business model. A business model may be considered viable if it creates value for both users and providers. The STOF model provides the basis to construct organizational arrangements which may eventually result in viable business models. The study includes a stakeholder analysis, an orientation on competitive offerings for `DEM- DISC¿ and a market analysis. The identified stakeholders were approached to participate in interviews. In the competitive offerings analysis no competing offerings were found in the Netherlands. Although the concept of `social charts¿ is emerging, none are fully completed or provide the combination of clarification of needs and matching resources. It revealed several organizational forms in which the leading role was played by different parties, e.g. commercial parties, governments or interest groups. Previously a symposium was organized by the project group in which possible business models or approaches were discussed (see: Hulstijn, J., Haaker, T., Huisman, E., Meiland, F., Slagter, R. 2005). The combined approaches resulted in 5 organizational arrangements; a `care providers¿ model¿, an `insurer model, a `governmental model¿, a `community model¿ and a `commercial model¿. An organizational arrangement is considered an important element of business modeling, based on the Freeband Business Blueprint Methodology (FBBM). An organizational arrangement reveals required roles and who may fulfill those roles. Absence of detailed revenue sharing distinguishes organizational arrangements from business models.
Item Type:Essay (Master)
Faculty:TNW: Science and Technology
Subject:85 business administration, organizational science
Programme:Health Sciences MSc (66851)
Link to this item:http://purl.utwente.nl/essays/57860
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