The state of UK healthcare
Circle exists because we believe that UK healthcare
urgently needs innovation to transform the value offering for
patients and taxpayers. In any professional service, value is
defined as quality relative to price. In healthcare, quality is
defined as clinical outcome plus patient experience. This equation
provides a tool to assess the value of UK healthcare. The
conclusion is stark. Over the past decade, the denominator of
the equation has tripled, whilst the nominator - patient experience
and clinical outcomes - has improved incrementally. Various studies
have shown that entrepreneurial new entrants are the key driver of
productivity gains and innovation in any sector. A University of
London study on UK manufacturing plants in the 1980s showed that
productivity increased as efficient new entrants joined the market
and inefficient incumbents lost market share to them. History
has shown that wherever disruptive innovations invade mainstream
markets, the result is lower cost, higher quality delivery.
Aligning incentives to unleash innovation
Circle was founded to transform the value equation in healthcare
by offering the best possible clinical outcomes and patient
experience at the lowest possible prices. To do so, we
designed an employee co-owned partnership that aligned incentives
across the organisation, enabling everyone to focus on putting
patients first. The result was a partnership structure where
everyone from the consultant to the cleaner becomes an owner in
Circle, with shares allocated according to an individual's
contribution. In this way, we incentivise everyone to provide
the best possible experience and outcomes for our patients.
The future of UK healthcare
The innovation that we have seen at Circle - from the formation
of a 2000 strong clinical partnership, to the 18% compound
productivity gain we achieved in Nottingham, to the delivery of
five star hospitality to NHS patients in Bath - demonstrates what
can be achieved by giving healthcare professionals the power to
push the boundaries of experience and excellence on behalf of their
patients. Our hope is that many more will be empowered to
deliver innovation that transforms the value equation in UK
healthcare. The country that pioneered the first blood
transfusion, the first antibiotic and the first universal health
service should still be a place where it is irresistible for the
best talents to offer the boldest solutions.