Final answer:
Regina E. Herzlinger in 'Why Innovation in Health Care Is So Hard' identifies challenges such as the complexity of the health care system, heavy regulation, risk aversion, resistance from vested interests, and the need for clear value propositions in health care innovation.
Step-by-step explanation:
In her article 'Why Innovation in Health Care Is So Hard', Regina E. Herzlinger discusses several challenges to health care innovation. Some factors she identifies include the complexity of health care systems, where innovation typically involves a change that affects multiple constituencies and aspects of care.
Additionally, Herzlinger points out that regulations heavily influence the health care industry. The risk of failure and its consequences are less tolerable in health care compared to other sectors because they directly affect human lives, creating a reluctance to implement unproven innovations. Moreover, the existence of vested interests can oppose change that threatens the status quo.
Another significant challenge is the need for a clear value proposition. Innovations must demonstrate improvements, not only in outcomes but also in cost-effectiveness, to be embraced by payers, providers, and patients. Achieving this is often difficult due to the fragmented nature of health care delivery and financing.