social entrepreneur

5 Health and Science Trends to Watch in 2013

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As the New Year beckons several trends that emerged in  2011-2012 are certain to explode in 2013. Here is a look at the trends I’ll be watching.

Trend 1: Open Science

Although open source and collaborative software development have been the norm for decades, the notion of open science has only recently gained a foothold.  Bolstered by recent access to large data sets from government entities, an array of mobile health applications, an explosion of data-hackers, and a growing mistrust of industry sponsored research, scientific research, especially health and medical research, is about to move from the lab to the social sphere.

Trend 2: Citizen Science

From volunteer classifiers and armchair tinkerers to full-fledged data analytics and engineering, the next decade is sure to see an explosion of scientific discovery coming from the most unlikely places.  In health and medical research, the tools to measure and analyze one’s own health are becoming more readily available to consumers.  Every person is potentially his or her own science experiment.  Every social network a data set. How we choose to utilize that information, who we share it with and how we share it will likely determine the next major corporate players in the marketplace.  At the very least, this new found access to health data, whether it be our own or others with similar diseases and health issues, is changing the very dynamic of the doctor-patient and patient-industry relationship.

Trend 3: The End of Academic Publishing

Peer-reviewed, industry-sponsored, closed-sourced publishing has been the gold-standard for scientific publishing for decades, but the model is broken and everyone knows it.  In much the same way that the internet and blogosphere have damaged traditional media, open access to data and information has made the closed nature of academic publishing an all-but obsolete model for the dissemination of information.  Add to the mix the growing problem of significant publishing biases, fraudulent and errant data, the once vaulted anonymous, peer-review process – the process that arguable defines academic publishing – is crumbling.

Perhaps the final straw of what will ultimately be the sector’s unraveling (lest the model change quickly) was Elsevier’s unsuccessful attempt to privatize and profit from taxpayer funded research through shady legislation called the Research Works Act (RWA). Coming on the heels of the failed Stop Internet Piracy Act (SOPA), scientists and major universities loudly protested RWA and succeeded in blocking the bill. Elsevier suffered and continues to suffer significant economic losses.

As a result, open access publishing which had been growing quietly over the last decade, exploded in 2012. Even more interesting, a bevy of new collaborative and open source research and publication sites (ResearchGate, for example) emerged heralding a complete shift in the control and dissemination of scientific and medical information.

Trend 4: The Rise of the Social Entrepreneur and the B Corporation

One of the most innovative trends in recent decades is the emergence a new corporate structure, called the B-Corporation that will codify social goals alongside corporate profits.  The B Corp is a hybrid of sorts that combines the social intentions of the non-profit with the fundraising and profit potential of a C corporation. Though the B Corp has no teeth or tax benefit per the federal tax code and is only recognized in 16 states thus far, it has legs. There is a real hunger to create pragmatic business solutions for social problems. Social entrepreneurism is on the rise and B Corps may provide the structure to help them succeed.

Currently, B-Corps are focused primarily on social and environmental problems. Should the B-Corp gain traction in the healthcare industry, it could usher an entirely new class of innovation in traditionally ignored and underfunded areas of the healthcare sector- orphan diseases/drugs or maybe even women’s health.

Trend 5: The Power of Women

Hell hath no fury like a woman scorned was proved over and over again during this last election season. Though narrowly framed as the abortion debate, the fight over women’s reproductive healthcare rights goes much deeper. It is a battle over fundamental human equality under the law and spans every aspect of the modern economy, but most especially the healthcare sector.

We have yet to see the full backlash of the political attempts to limit women’s healthcare decision-making, but make no mistake, fail to recognize the power of millions of angry women, and your business, your political career will be over (how many local and federal legislators were voted out of office by women’s groups?).  Sorry guys but you wouldn’t stand for a bunch old women regulating your seminal excursions, why would you expect women to forfeit their healthcare choices, safety and survival to a bunch of old men with less than honorable motivations. As 2013 beckons, expect women to wield much more political and economic power. The companies and politicians that recognize this will unseat those that do not.

B Corporations: A Way Forward for Healthcare

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The healthcare system is broken. Healthcare costs are skyrocketing and services are diminishing.The for Benefit Corporation or B Corporation could provide a solution, if the designation came with a beneficial tax structure.

What is a B Corporation?

B Corporations represent the intersection of social good and corporate benefit.

The B corporation is a recently defined class of corporation that must create societal benefit as well as shareholder profit. It combines the dedication to social purpose ascribed to by non-profits with the for-profit and growth potential of C corporations. Proponents of the B corporation argue that act of codifying the social good requirement within the corporate charter allows companies to maintain their for-benefit or social good programs, which are often less profitable and frequently disbanded by the boards of directors in favor of higher profits.

The B corporation is a recent invention. Since its conception in 2010, 11 states have enacted legislation to recognize the B corporation, while 16 states are considering the option. At this time, the B corporation receives no special tax consideration. Maybe it should.

How Might the B Corporation Solve the Healthcare Problem?

By putting health into the corporate charter of ‘healthcare’ companies.

The healthcare system is comprised of two major players, pharmaceuticals and insurers. On both sides, profits rule over of the social good of promoting, maintaining or managing health. As C corporations, their charters demand that they maximize profits for their shareholders. And maximize they do!

The pharmaceutical and medical device industries focus on blockbuster, one-size-fits-all drugs and devices ignoring the inherent variability of human biology and the need for more personalized approaches to medicine.  Selling one pill or procedure to all indiscriminately is much more profitable than developing specialized medications for smaller populations or orphan diseases.The result is a never-ending cycle of bad drugs, adverse events and unsafe medical devices marketed heavily and often fraudulently. This cycle leads first to blockbuster profits, then to class action lawsuits and astronomical court awards and fines. The return on investment to shareholders is enormous, even with multi-billion dollar lawsuits.

The insurers, on the other hand, maximize profits increasing premiums while cutting services and denying procedures.  Health has not been in the equation for these businesses for some time, although this may change with the new healthcare regulations.

Imagine if companies playing in the healthcare space could codify in their corporate charters a dual role of providing a societal good – health – along with the goal of shareholder profits. Imagine if the mission of providing ‘health’ came with tangible, measurable outcome objectives that were transparent and verifiable. Imagine if the ‘for-benefit’ designation came with a favorable tax structure.

The business climates created by B Corporations could change the healthcare industry in ways our laws don’t currently support. The for Benefit Corporation designation could be a key towards restoring greater fairness and efficacy in our healthcare system.