The two party system is not working.  The Republican party is now composed of conflicting interest groups (notably big business and the white working class) and very different political beliefs (free trade, Libertarian).  The party's leadership cannot reconcile the differences as the failure to repeal Obamacare showed.  The ideology of free markets in health insurance clashed with the reality of people's lives to a point that the majority party is unable to implement the party platform.

Unfortunately, it is extremely difficult to create a new political party because it would have to establish a presence in each state and territory.  The best outcome is probably a fissure within the Republican party so deep that the more liberal and pragmatic members establish a centrist party or decide to sit as independents.