Life science companies are redefining their strategies and implementing new operating models as they prepare for disruptive forces hitting the broader healthcare ecosystem, according to a book by Accenture
The Healthcare Disrupted book outlines how medical device companies are transforming into service entities by remotely managing specific patient populations; pharmaceutical companies are adding robust services in support of the patients and health systems using their products; and providers are extending services into post-discharge monitoring and remote care.
Authors Anne O’Riordan, global senior managing director of Accenture Life Sciences, and Jeff Elton, managing director, Accenture Life Sciences, said they have examined the forces transforming the healthcare and life sciences industries, from digital disruptors to changing reimbursement models.
O’Riordan, said: “A new order is emerging in the healthcare industry, focused on the patient, in which financial incentives will be linked to the value a product delivers and not just the product itself.”
O’Riordan and Elton said that they have outlined four emerging business models that are centered on patient outcomes and value:
- Lean Innovators: Companies that combine the best practices of generics companies’ efficient manufacturing and lean supply chain with M&A expertise, challenging existing cost structures, productivity and operating models.
- Value Innovators: Companies that are scientific innovators, product-centric and largely focused on specialty therapeutics and the patient journey which use complementary services to improve outcomes for patients and health systems.
- Around-the-Patient Innovators: Companies that are focused on improving patient and health systems by integrating therapeutics, devices and services with clinical management processes.
- New Health Digitals: Companies from within and outside the healthcare industry that are changing how and where patient care is delivered with economics grounded in digital, global scale and large ecosystems of apps, technologies, devices and the cloud.
O’Riordan, said: “New targeted therapeutics, smart diagnostics, advanced informatics and digital technologies are redefining healthcare and enabling patients to become more proactive in determining their own health outcomes.
“Many factors are catalysing this change, including the availability of genomic, health and lifestyle data, and an abundance of technology solutions that can help patients monitor, measure and adjust their habits to improve their health and treatment outcomes.”
Elton said: “Pharmaceutical companies, medical device organisations, caregivers, patients and high-tech companies and others, are joining forces in innovative ways, offering novel products such as wearables and combining them with services to improve health and wellness outcomes.”
“Traditionally, there were three distinct types of healthcare players: health providers delivering treatment and services; health manufacturers – pharmaceutical and medical device companies; and health payers which would typically be insurers and governments.
“But now, these lines of distinction are blurring as new approaches are deployed to improve both health outcomes and overall value to the health system,” added Elton.
Additionally, the book predicts new types of collaborative pairings occurring – medical device and digital technology companies with pharmaceutical firms; risk-bearing providers with life science companies; and payers with digital technology companies.
O’Riordan, said: “Payers are moving into the direct provision of care, health providers are now directly assuming and managing risk, technology companies are connecting remote clinical monitoring technologies and advanced analytics together as a service and medical device companies are providing direct patient care management services.”
Elton said: “The days of slow and steady evolution in the healthcare and life sciences industry are over.
“The industry that once measured change in decades is experiencing a disruption that will shift the landscape in just a few years, or even sooner. Radical changes are already making the industry more dynamic and unsettled than ever before.”