A highlight from Culture Clash: A Lesson from the Theranos Case

Knowledge@Wharton
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Patients about her company's blood testing machine while fraud is the theme of this case. There's another side to this story. The future of the relationship between the healthcare sector and big tech rob burns is a professor of healthcare management with the word school. Who's taking a deeper look at this and he joins us to discuss what the is finding out. Rob great to talk to you again. Hope you're doing. Well i am and thanks for having me back on thank you. This is an interesting time. I think to say the least for the healthcare sector especially over the last few years because of the impact the digital and big tech are having right now but there are some people out there that that have some concerns about what this relationship is gonna look like moving forward because the dynamics of the two industries at times don't match up big tech likes quick strong advancement healthcare. Not always that case. It's a culture clash to be sure you know and the tech culture and silicon valley and elsewhere just moves at warp speed and lots of Funding enthusiasm from venture capital and then private equity And a lots of hype. Lots of hoopla. Lots of Exuberance and then it comes into healthcare looking for well. here's some virgin turf to apply. All of this new cool stuff too and the question is whether or not That stuff fits easily or as. We've just intimated there's a culture clash in probably deeper than just being a culture clash the whether or not this stuff is gonna work and transform healthcare or conversely at the extreme just crash and burn. Yeah because i think that the concern is that the the medical industry as important as it is to our country and obviously countries around the globe could feel some significant impact to the negative from some of the patterns and methods of the tech sector. Or you know it's it's interesting because A lot of the stuff in tech. You know it's based on technology. You know new cool technology but healthcare is actually more of a person centric business. I mean they're no economies of scale and healthcare and most of the sectors because it's so labor intensive whereas texts coming at this from capital intensive stance and they're thinking man if we can just a deploy all this capital intensive equipment to a labor intensive industry will just make it much more productive and efficient and rational and we'll speed things up and that's that's a huge challenge right there just bridging that gulf between capital intensive and labor intensive sectors and it breeds a lot of interesting dynamics when these companies come in the question is. Does that actually help things. So we actually have a few precursors even mentioned elizabeth homes and theranos and just to remind your listeners. There are no s- was well.

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