Texas Tech University Health Sciences Center
Kodak's Demise Provides a Lesson

Kodak's Demise Provides a Lesson

Kodak's Demise Provides a Lesson- image0Much has been written about the demise of Kodak—a storied icon of American industry—and its anticipated bankruptcy. Most lay the blame on the digital camera and the fact that today’s camera no longer needs film. This is a bit ironic since Kodak engineers actually invented the digital camera. Why then did they not capitalize on it? Business writers are having a field day talking about how Kodak failed to recognize the times and so forth. However, the facts are, they recognized the times (the advent of the digital camera), but they did not change. Why? Based on what I read, it is because film was a “cash cow” and they made millions from selling it. They just could not let go of it.

Why am I talking about Kodak and film? For this reason: What if the health care industry, with its reliance on traditional fee for service, which has paid us well for so long, looks to a new model—a model wherein we are not paid for procedures and tests, but rather are paid for keeping people healthy? Some would say wait…and I know this is hard, but can we take a lesson from Kodak? Kodak wanted to stay in the film business, while all the time it was in the photography business and did not realize it.

Kodachrome They give us those nice bright colors They give us the greens of summers Makes you think all the world’s a sunny day I got a Nikon camera I love to take a photograph So mama don’t take my Kodachrome away —Paul Simon

— Brent Magers,  CEO of Texas Tech Physicians