Healthcare · Healthcare business models

Health companies should separate clinical and business decisions

In short Health companies should state publicly who makes clinical decisions and who makes business decisions, because clear separation, not vertical integration, is what earns patient trust.

CVS splitting off its pharmacy business is a good sign: one company shouldn't be the clinic, the pharmacy, and the business all at once.

When one entity does all three, it's hard to say who a decision is really for. The patient? The margin? Nobody can tell from the outside.

At Happy Head, the line is simple. Board-certified dermatologists make every prescribing decision. I run the business. I'm a nurse by training with an MBA, and I still don't get a vote on what a patient is prescribed.

That's the version of this I'd want every health company to copy. Say who makes the clinical call. Say who makes the business call. Put it where customers can read it.

Conglomerates were built to capture more of the patient's dollar. Clear lines are how you earn their trust.

Originally posted on LinkedIn →

Topics Healthcare business models · Patient trust · Clinical governance · Telehealth

Benjamin Katz

About the author

Benjamin Katz

Co-founder and CEO of Happy Head, an online hair growth medicine provider

Benjamin Katz co-founded Happy Head, an online provider of customized hair growth medicine prescribed by board-certified dermatologists, in 2020 and has been CEO since 2021. Benjamin trained as a nurse at the University of Pennsylvania, also studied economics there, and earned an MBA from the Wharton School. Earlier, Benjamin founded CARD.com and, in 2018, HavenColiving.com.

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