The healthcare sector is on the cusp of sweeping disruption. The hallmarks of the old system--pricing that's disconnected from outcomes and incentives for treating sickness rather than maintaining health--are no longer sustainable. And yet, after decades of financial success, it's difficult for most established industry players to grapple with meaningful changes to their business models.

In their latest book, Bringing Value to Healthcare: Practical Steps for Getting to a Market-Based Model, Rita Numerof and Michael Abrams lay out the roadmap to a healthcare system that is...