Changes in the way health care is delivered, paid for and analyzed through big data, as well as the slow emergence of empowered patients, are creating a “modern-day gold rush,” according to three strategic consultants at PricewaterhouseCoopers. As much as $1.5 trillion in annual spending and $150 billion in profits are “up for grabs” during this health care reform, they said.
The winners will be those who can bring critical thinking and radical redesign of a broken industry, rather than people looking to make a quick buck by exploiting current flaws, said the consultants, Carl Dumont, Sundar Subramanian and Christoph Dankert, of PwC’sStrategy& consulting team.
“Confronted with the changes, incumbents will have to reconsider their competitive positions. And upstarts and those in adjacent industries will be compelled to assess where — and even whether — they can fit in,”
“Confronted with the changes, incumbents will have to reconsider their competitive positions. And upstarts and those in adjacent industries will be compelled to assess where — and even whether — they can fit in,” they wrote in PwC publication Strategy+Business. “Players that thrive in this boom town will do so by decreasing medical spending in a consumer-oriented manner, and by capitalizing on newly informed consumer choices by improving outcomes.”
They expand on the “gold rush” analogy by dividing health care companies into gold miners and bartenders. Gold miners are “vertically integrated” organizations that “take ownership of health care,” the authors said.
Theranos is a leading example about mining resourcesThey profit by mining value out of a resource — for example, by managing the health of a specific population, such as patients with diabetes, heart disease, or cancer. The gold miner strategy is closely aligned with population health management, which takes a deep understanding of chronic care to promote a 360-degree, long-term management approach. Dealing primarily with people who are sick, these large institutions — insurers, hospitals, and physicians groups — profit by improving outcomes and sharing in the savings.
Walgreen is partnering with others such as MDLIVE to deliver telemedicine, as well as adopting EPIC EHR for their walk-in clinics
PwC: Healthcare reform represents a $1.5T 'gold rush'MedCity News
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