10 predictions for the healthcare industry in 2014
Based on healthcare industry predictions made last year by leaders and analysts, this year should have brought a re-evaluation of meaningful use (yep), a quantified self movement that would move mainstream (ehhh), more M&A activity in the industry (definitely), and the emergence of interoperability as a competitive benchmark for providers (not quite yet?).
For 2014, analysts at PricewaterhouseCoopers are predicting that healthcare companies, especially drugmakers, will have to make adjustments to their innovation and business processes to account for changes in ecosystem. We'll also see more corporate venture capital, more employers exploring private health insurance exchanges, and more price transparency.
Here are 10 predictions from PwC's annual "Top Health Industry Issues" report:
- Industry changes will cause healthcare companies to reconsider their roles and business models. Many companies will look to expand their footprint and expand revenue streams (ex: insurers are acquiring providers, and providers are entering the insurance business).
- Social, mobile, analytics and cloud tools have changed how health organizations interact with patients and with each other, which will drive new business models for healthcare companies.
- Companies will think more like startups - forcing experimentation and failing faster, cheaper and better.
- Demand for price transparency continues to grow and will be fueled by new health insurance exchanges. Cost-conscious companies will make transparency a priority in negotiations with health plans and providers.
- New technology has created rising demand for a digital-savvy healthcare workforce that can leverage technology to engage with patients.
- More employers will explore the potential of private exchanges. Sixty-five percent of surveyed consumers preferred that their employers offered three to five plan choices.
- In the face of precision medicine and a focus on specialty products, drugmakers will need to embrace alternative clinical trial designs.
- Drugmakers will prepare for new requirements to prevent counterfeit medications in the drug supply mandated by the recently enacted Drug Quality and Security Act. In 2015, drugmakers will be required to begin tracking prescribed drugs in large bundles.
- Corporate venture capital will make up a bigger share of healthcare deals, filling in gaps left by retreating traditional venture capital firms. Partnerships between those two kinds of VCs will help corporations broaden their reach into startup communities.
10. States will continue to turn to managed long-term care solutions to help contain Medicaid costs. PwC estimates that 26 states will have Medicaid managed long-term care programs by 2014.
The firm surveyed 1,000 healthcare consumers and interviewed health industry leaders to compile the list. Do you agree with its predictions? Disagree?
[Photo by - Mikecogh]