Disrupting Healthcare: Why Innovation Must Work Within the System

The healthcare industry is often touted as ripe for disruption, but Zocdoc CEO Dr. Oliver Kharraz has seen many attempts at innovation fail.

According to Dr. Kharraz, companies like Amazon, Walmart, and IBM have tried to disrupt the healthcare system, but ultimately failed due to its complexity and interconnectedness.

Dr. Kharraz points to examples such as Haven, a joint venture between Amazon, Berkshire Hathaway, and JPMorgan Chase that disbanded in 2021 after just three years; Walmart Health, which closed all 51 clinics across five states in 2024; and IBM Watson Health, which was sold to private equity firm Francisco Partners for $1 billion in 2022.

Dr. Kharraz argues that healthcare is not a technology problem, but rather a complex systems and incentives problem, and that disruption playbooks simply don't work in this industry.