Responding to the challenges of the new healthcare marketplace: organizing for creativity and innovation.

The health services industry is undergoing a revolution. Changing reimbursement and competitive dynamics are creating new incentives and constraints that demand different organizational responses. To survive, let alone thrive, health service organizations must enhance their level of creativity and innovation. This article describes the process of creativity and innovation, discusses barriers that impede the development of new services and products, and explores strategies for enhancing the creative and innovative potential of these organizations. Health service organizations that effectively and efficiently manage the generation and development of new ideas will have a significant competitive edge in the years to come. Organizational creativity and innovation will become the new "high ground" in the health services industry.