Business Model Design and Entrepreneurial Risk Evaluation for Health Service Innovations

Abstract

We discuss the application of a business model-based approach for designing health service innovations and related risk evaluation. As an example we describe a horizontal backwards integration of hospitals’ business models by designing an integrated preventive health service. The business model template consists of five partial models, the value proposition model, the market model, the resource model, cost model and revenue model which are discussed within the context of integrated care. By means of a decision tree analysis, we apply an economic pre-evaluation of potential net benefits of the preventive program compared to the status quo. As a hypothetical example we analyze a stroke prevention program that screens arrhythmia among risk patients and use input parameters based on public epidemiological data. To take risk evaluation into account a simulation is applied in order to demonstrate how entrepreneurial risk in terms of net benefit distributions can be assessed.