Blurring the Lines: Preparing for Convergence in Health and Life Sciences
Massive opportunities exist to lead the transformation of the global healthcare market and create value for stakeholders throughout the system.
Massive opportunities exist to lead the transformation of the global healthcare marketplace.
for healthcare services TODAY, BOTH PUBLIC AND PRIVATE PAYERS throughout the world are imposing strong demands for efficiencies. At the same time, unconventional competition is arising from newly-converging technologies and services, creating a platform for transformative change in healthcare quality and access.
This disruption is challenging existing actors in the healthcare sector while at the same time, creating opportunities to design stronger systems. Perhaps more than ever, commercial players are at the centre of the opportunity to achieve a stronger balance of quality, cost and access to healthcare services.
The core demand is straightforward, if difficult to accomplish: companies across the health and life sciences sector need to realign their goals with the changing nature of the health system, while identifying profitable opportunities to lead collaborative efforts with system stakeholders. Traditional life sciences companies — including pharmaceutical, medical device, pharmacy, and diagnostic health service providers — as well as non-traditional players such as retail, technology, telecommunications and elder-care providers are already beginning to engage in the revolution.
In this article we will showcase examples of health-sector convergence and outline the key questions for-profit organizations need to address as they seek success in this emerging landscape.
The Drivers of Change
In the current environment, three sets of market and technological forces are reshaping how healthcare is managed, delivered and experienced. 1. SHIFTING DEMOGRAPHICS, UNCERTAIN ECONOMIC GROWTH AND
Every traditional developed market VALUE-BASED PAYMENTS. in the world faces the challenges posed by an aging population. In Canada, for instance, the population over age 65 now outnumbers youths under age 15, and by 2036, the population of those older than 65 will more than double. This shift towards a population with high needs for healthcare services, combined with only moderate long-term economic growth prospects, suggests that today’s era of fiscal caution is here to stay. Faced with growing demands for care, healthcare payers are increasingly focusing on outcomes, while aligning reimbursement to value-based pricing models. Participating organizations need to reshape their pricing and service models accordingly — or face failure.