Recently, the Ontario Government announced plans for a province wide family practice record system. I was debating what to write about it when I came across this post from Dr. Shahin on LinkedIn. While I don’t agree with all of it, it’s an important point of view. He’s kindly agreed to allow me to post this as a guest blog, and I encourage you to give his LinkedIn page a read.
Dr. Ilan Shahin is a Family Medicine specialist who serves as the Primary Care Lead for Patient Attachment for the Central West Ontario Health Team (CW OHT).
He’s also a Board Member and Secretary-Treasurer of the Ontario College of Family Physicians (OCFP), has an MD and Master of Business Administration (MBA) from McGill University and is a co-founder of ConsultLoop, a former e-referral platform. Basically a whole lot smarter than I am.
Innovation Winter is a Canadian tradition of killing off product categories with the whisper of a large procurement.
Every so often in digital health, governments see small companies sprouting around a category, and decide to procure The Thing for the entire jurisdiction. This is ambitious, well-intended, and comes with its fair share of boosters. E-consults, e-referrals, and e-prescribing all had similar stories. However, these didn’t work out as intended.
E-consults remains a clunky product with uptake well below its potential, when once there was a physician-led startup that offered a nice mobile experience that was much easier to use and even log on to.
E-referrals is still maturing when it’s been 10 years since an original RFP was won via a single LHIN with the thought that it would be rolled out across the province. There too, there was a company (which I co-founded) that built the referral platform at less than 5% the cost of that initial RFP, produced unprecedented and yet unmatched wait time data, and had pilots shut down because of whispers that e-referrals would be deployed imminently across the province.
E-prescribing has the story of Infoway’s landmark project that was shut down after hundreds of millions in spending, with market penetration that was only a few percentage points of total prescriptions despite the virtualization pressure of a pandemic. Setting standards for companies serving the pharmacy market could have harnessed their competitive drives, rather than relying on one platform with its limited agility.
In each case, government comes with good intentions, and tries to build The Thing. In doing so, they create what is effectively a monopoly, which risks insulating the product from market forces that produce better value, and lower costs.
However we don’t need a large procurement to actually have happened, for the monopoly or oligopoly to be entrenched, in order to kill innovation. Just the mere whisper that something big is coming is enough to make rational actors across the system wait and see. This also includes small businesses, which is where the imperative to listen to customers, the urgency to improve, and the competition on price and quality actually lives. Ingenuity lives there too, in the companies facing short cash runways, the incumbent complex, and the need to prove themselves as trustworthy both clinically, operationally, and ethically.
Government has to be careful about what it does to the marketplace when it acts. Sometimes in raising its hand, it ushers in an innovation winter, which has the potential to block far more value in a robust, competitive market, than it uncovers in a RFP-led closed market approach.
Let government focus on building the strongest marketplace, driving to common standards to uplift the market’s value, while ensuring fair competition to harness the cost and quality pressures that come with it.
Market-making. That’s the game. Innovation winters are signs of failure.
justanoldcountrydoctor 