Monday, September 21, 2015

Health Care Business Model Innovation 2: The Seven-Year "Startup"

In my last post, I linked to an interview with Linda Hall, the former CEO who turned around Minute Clinic and ultimately sold it to CVS.  In today's StarTribune, there's an article on the spreading phenomenon of in-store clinics, but Minute Clinic is 15 years old! Especially in health care, innovation adoption seems to take longer than you would expect.  Established health care providers are playing catch-up.  How do they do it? Usually either through acquisition (as CVS did), or through outsourcing to a young company. 

We often think of younger, innovative companies as "startups" even though it can take years for them to hit their stride.  Case in point:  Zipnosis, a seven-year old "startup," which private-labels virtual healthcare for established providers.  Zipnosis was started by a Carlson School MBA student collaborating with medical professionals and won the Minnesota Cup venture competition Student Division way back in 2008.  Its leadership team also currently includes a founder of Minute Clinic as Chief Clinical Officer and my colleague Toby Nord as Chair of the Board.  Zipnosis spent years experimenting with different target markets, and didn't take off until health care systems truly began to value patient convenience and operational efficiency.