Dive Brief:
- As the rise of new technologies collides with new healthcare compensation models, the industry is teetering on the brink of rapid transformation, according to a new report from research firm Frost & Sullivan.
- The company argued the combination of value-based care delivery and customer-centric approaches will push industry players toward new solutions that add value for customers.
- Furthermore, the rapidly occurring digitization of products, services and commerce models is "democratizing current healthcare systems," the study found, breaking down previous barriers held in place by high gatekeeper costs.
Dive Insight:
The findings suggest the market shifts are triggering entities such as medtech and pharma companies to bust out of their former molds, beyond products such as pills, to adopt customer-centric service solutions.
CEOs should look toward innovative business models that can help them monetize emerging opportunities, according to Frost & Sullivan Transformational Health Industry Analyst Kamaljit Behera.
"Collaboration and open-source innovation are key ingredients for future restructuring," Behera stated. "Companies such as Apple, Google, IBM Watson and Intel will continue to compete outside their domain, forcing traditional healthcare companies to change their dominant business models."
The company further pointed toward Walmart looking to become a primary health provider and Medtronic's Diabetes Management's move to an intelligent-based solutions business model, and suggested the use of "actionable health outcome data" will form the basis of the industry landscape. The future can expect to see more around crowdsourcing, mass customization, open innovation and data collection based on customer preferences – with scalability being the most critical factor for success, according to Behera.
The growing demand for value has indeed been providing some counterbalance against increasing healthcare costs, a PricewaterhouseCoopers’ (PwC) report similarly found earlier this year, with demand for consumer friendly services adding to the mix.