The tech industry is currently undergoing a significant transformation. Two of its major players, Nvidia and Intel, are moving in opposite directions. Nvidia, which was once a relatively small player in graphics processing, has now become the most valuable company globally, surpassing the likes of Apple and Microsoft in terms of market capitalization. On the other hand, Intel, a former leader in computing innovation, has seen its stock price decline sharply, its CEO step down, and its position in the Dow Jones Industrial Average taken over by Nvidia.

How Tech's Rise and Fall Impact Healthcare

Lesson One: The Significance of Pricing

Intel discovered through hard experience that even companies with outstanding quality like them cannot continuously raise prices. In the 1970s, Intel dominated the memory chip market by producing high-performance silicon semiconductors at premium prices. However, by the end of the decade, Japanese competitors started offering similar-quality chips at much lower prices. Facing a decrease in market share and shrinking profits, Intel's CEO Andy Grove and founder Gordon Moore made a crucial decision in the early 1980s: they completely exited the memory chip market and shifted their focus to microprocessors - specially designed chips that power our cars, refrigerators, and phones.Despite internal objections and financial difficulties during the transition, Intel's decision to move from memory chips to microprocessors not only saved the company but also established its technological dominance for the next two decades. This bold move shows the importance of making strategic changes in response to changing market conditions.Healthcare professionals also face a similar urgent need to adapt. For a long time, physicians operating under the traditional fee-for-service model have been able to maintain their incomes by performing more procedures and charging higher fees. But now, these strategies are no longer feasible.Medicare's recent announcement of a 2.9% cut in physician reimbursement rates for 2025, along with private insurers indicating potential similar reductions, makes it clear that the financial model of the past is falling apart. Healthcare professionals must adapt to survive. The question is: how?

Lesson Two: Multiple Paths to Creating Value

Intel's success in transitioning from memory chips to microprocessors was not just about abandoning a failing product. It was about identifying and capitalizing on a new emerging opportunity.In the 21st century, Intel's resistance to change had significant consequences. While Intel continued to focus on traditional CPUs (central processing units) designed for sequential tasks like word processing and internet searches, Nvidia took the lead by pioneering a newer and more powerful technology: graphics processing units or GPUs.Initially developed to render the complex visuals of video games, Nvidia's GPUs contain hundreds of microprocessors that can operate in parallel. This enables them to perform thousands of calculations simultaneously, making GPUs much more efficient than CPUs for tasks that require extensive data processing. This adaptability has made GPUs essential for generative AI applications, including natural language processing and large-scale data analysis. Nvidia's strategic shift led to its dominance in the industry and remarkable market success.For businesses using Nvidia's chips, the benefits outweigh the costs. Applications powered by GPUs allow a few individuals to complete tasks that would otherwise require a much larger team. The lesson for healthcare is clear: success lies in meeting the future needs of patients rather than sticking to outdated approaches that worked in the past.Historically, healthcare mainly focused on meeting the needs of patients with acute conditions such as pneumonia, appendicitis, or broken bones. The fee-for-service model was designed for this, allowing providers to bill for each specific intervention. But today, the situation has changed dramatically. Chronic diseases like diabetes and hypertension now account for 60% of all medical conditions and at least 70% of healthcare costs.Just as Nvidia reimagined its offerings to meet the demands of the future, healthcare professionals must also shift their focus and technology to address the challenges of chronic diseases. By preventing these conditions and managing them more effectively when they occur, doctors could reduce complications such as heart attacks, strokes, cancer, and kidney failure by 30-50%, according to CDC estimates. This would not only save lives and improve public health but also save hundreds of billions of dollars annually for employers and government healthcare programs.From a strategic perspective, this shift is similar to Nvidia's success with GPUs (in contrast to Intel's failure to adapt beyond CPUs). For healthcare professionals, adopting a similar approach could lead to increased income and greater autonomy.Today, chronic diseases are still not well managed. Hypertension, which causes 40% of strokes, is controlled in only 60% of patients. Diabetes, the leading cause of heart attacks and kidney failure, is effectively managed less than half the time. Addressing these gaps would not only improve outcomes but also give clinicians more control over medical care, leading to the third and final lesson.

Lesson Three: The Need for Risk-Taking

When Intel's leaders were dealing with a struggling memory chip business, Andy Grove famously asked Gordon Moore, "If we got kicked out and the board brought in a new CEO, what do you think he would do?"Both agreed that the new leader would exit memory chips. This decision required boldness and a higher tolerance for risk - something that most healthcare leaders lack.Nearly two decades ago, Intel was hesitant to shift to GPUs and stuck to CPUs as its core business. If Intel had used its vast resources to embrace GPUs, it could have easily outperformed Nvidia. By not taking action, the company suffered financial setbacks and became less relevant.Healthcare professionals must decide whether they want to be like Nvidia or Intel - embracing a new strategy that benefits providers, payors, and patients, or sticking to outdated practices and payment models.Thousands of clinicians have already tried to escape the increasing challenges in medicine - financial stress, burnout, and declining reimbursement - by joining hospitals or selling their practices to private equity firms. But based on my conversations with hundreds of doctors, most are disappointed. Many report a loss of autonomy and unfulfilled promises of financial gain, while burnout rates remain high.To improve their situation, healthcare professionals must shift to a care model designed to address chronic diseases. Instead of managing patients through sporadic office visits every few months, they must adopt a more continuous approach. Wearable devices can provide daily monitoring, and generative AI tools can notify patients when their conditions are stable or require intervention.Achieving success will also require them to form large physician groups, prioritize primary care, and empower patients with modern technology.This shift in care delivery will require a new payment model. The fee-for-service reimbursement system, which encourages volume over outcomes, is not in line with the goal of preventing life-threatening medical complications. Instead, clinicians must adopt value-based care, where providers receive a fixed fee to manage the health of a population. This model aligns financial incentives with patient health outcomes.The transformation will not be easy or without pain. Some hospitals will close, and traditional practices will shrink. Residency programs will need to train more primary care physicians and fewer specialists. But these changes are crucial for the survival of the profession. Failing to adapt will only make the challenges facing both patients and clinicians worse in the years to come.

The Biggest Lesson: Act Now

The rise of Nvidia and the decline of Intel highlight a universal truth: change occurs slowly until it doesn't. Healthcare has reached a critical point, and clinicians who embrace innovation with courage will thrive, while those who hesitate or take only small steps forward will struggle.Andy Grove captured this reality when he said, "Most companies don't die because they are wrong; most die because they don't commit themselves. They waste their valuable resources while trying to make a decision. The greatest danger is in standing still."Healthcare professionals must now decide whether they will lead the way like Nvidia or face irrelevance like Intel. The stakes are extremely high.