OUR REPUBLICAN PRESIDENT:

By interviewing investors, entrepreneurs, and health care executives, Rauch finds that:

The federal government's movement away from fee-for-service payment, particularly in the Medicare Advantage program and the Affordable Care Act, has sent providers and insurers scrambling to explore value-based revenue models. They are focused as never before--as one executive put it--on not becoming Kodak.

The exponential increase in the quantity and quality of health-care data, the parallel growth in the power and availability of analytical tools, and the rising demand for value-based business models are combining to open the market to efficiency-seeking startups and products that would not have been viable even a few years ago.

Sensing upheaval in the market, an influx of outside talent into the health care sector is populating profitable niches for efficiency-improving products and services, moving traditional players to raise their game.

Together, those developments are making the health care sector more open to business-model innovation than at any time in memory. 

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