What Is Theranos’s Business Model, Anyway?

Lost in the ongoing kerfuffle over Theranos, the embattled diagnostics newco, is a more basic question: What does it take to win in clinical diagnostics, let alone “disrupt” it?

This isn’t a simple question, because on the whole, lab testing is a well-served sector. Clinical questions arise, samples are taken, tests are run, results are reported, decisions get made – and it all happens pretty quickly, cheaply, and reliably, millions of times each day. That’s not to say there’s not room for improvement, but in general, the system works pretty darned well.

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