Healthcare Disrupted: Next Generation Business Models And Strategies Free Download

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Elin Lidstrom

Dec 23, 2023, 2:29:12 AM12/23/23
to Polly Development

Healthcare Disrupted is an in-depth look at the disruptive forces driving change in the the healthcare industry and provides guide for defining new operating and business models in response to these profound changes.

Healthcare Disrupted captures this pivotal point in time to give executives and senior managers across pharmaceutical, biopharmaceutical, medical device, medical diagnostics, digital technology, and health services companies an opportunity to step back and consider the changing landscape. This book gives companies options for how to adapt and stay relevant and outlines four new business models that can drive sustainable growth and performance. It demonstrates how real-world data (from Electronic Medical Records, health wearables, Internet of Things, digital media, social media, and other sources) is combining with scalable technologies and advanced analytics to fundamentally change how and where healthcare is delivered, bridging to the health of populations, and broadening the resposibility for both. It reveals how this shift in healthcare delivery will significantly improve patient outcomes and the value health systems realize.

Healthcare Disrupted: Next Generation Business Models and Strategies free download

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Programmatic M&A is not just about executing on serial acquisitions; rather, programmatic acquirers execute a series of choreographed deals around specific themes, such as building new diversified businesses or acquiring new capabilities. Programmatic M&A is a strategic, proactive, and disciplined approach to creating deal flow, resulting in a series of related transactions that support a clear M&A blueprint that is linked to corporate strategy. Healthcare players can use programmatic M&A to help pivot their organizations coming out of the pandemic. For example, one large US health system previously pursued hospital acquisitions to complement its regional market footprint, yet in the last two years has pivoted to focus on acquisitions in growing areas of healthcare that complement its core acute care service offerings. This shift in strategy has included deals focused on home health and managing total cost of care with technologies that address alternative payment models (for example, bundled payments). Similarly, one company that provides services and supplies to office-based healthcare providers has leveraged M&A to increase its geographic scale globally, broaden the supplies it distributes, and diversify its offerings to include technology solutions. Since the pandemic began, this organization has also used M&A to enter home healthcare and wound care as new verticals adjacent to its core.

In about one-third of the cases, these Engine 2s were next-generation business models of Engine 1, even competing at times for Engine 1 customers. In nearly half the cases, these Engine 2s were distant adjacencies to the current core business, now newly accessible due to changes in technology (allowing advantages to be built) or shifts in business boundaries (rendering these adjacencies more accessible). Fewer than 20% of all Engine 2s were entries into totally new businesses. We feel that this is an important insight. More than 80% of the most successful Engine 2 businesses had some connection with the core business in terms of common customers, capabilities or distribution channels.

Fourth, 63% of incumbent leadership teams tell us that they believe insurgents with disruptive business models are a major threat to their Engine 1s. Industry analysis confirms this; a study of individual industries finds that the percentage of market value that new entrants have captured over the past 20 years ranges from 95% in financial services to 90% in telecommunications to 60% in healthcare. This is a key reason why more than 20% of companies are stalling out and why more than 40% are underperforming.

Records are being reset every year for speed of scaling to leadership in these evolving markets (especially enabled by their low capital intensity), and incumbent models are giving way to insurgents more often than we have seen before. On top of that opportunity, core resources such as capital, technology and capabilities that help to pursue promising ideas or to create the next-generation version of an Engine 1 have never been more widely available.

Those in the industry find themselves playing catch-up with a new sense of responsibility: to ensure that those without care can access it; to build strength into national health systems; and to see that healthcare re-emerges as patient-responsive, responsible and centric. The healthcare industry is directly confronting the business models it's built, defining what worked, what did not and what will work in the future.

These models represent potential strategies and direction that life science companies can take. How they implement them will depend on their journey - where they've come from and the place they want to hold in the healthcare system of the future.

Partnerships are driving change and the growth of exponential technology. A partnership between Case Western Reserve University, the Cleveland Clinic, and Microsoft helped advance the use of holograms in medical education and training. Next-generation holograms have the potential to educate healthcare professionals and patients. Physicians may even make virtual hologram house calls in the future.21 These technologic advances have implications for healthcare providers and staffing models of the future. Scientists at Stanford University have developed a lab-on-a-chip platform that can be printed with an inkjet printer for 1 cent and be used by untrained personnel.22 This low-cost diagnostic tool can be produced in 20 minutes and is advancing the areas of precision health, lab-on-a-chip technology, and access to clinical diagnostics.

New technologies are already driving the evolution of health. Today, healthcare innovators are working on integrating cloud computing, sensors, virtual and extended reality systems and fifth-generation broadband into our care delivery models. Just over the horizon, still more advanced technologies like quantum computing and an immersive metaverse are taking shape. There is no single new technology that holds the key to the future of healthcare. Rather, as these technologies continue to evolve and converge in the health care space, they are enabling the creation of a growing internet of medical things (IoMT).

For pharma/biotech, the ecosystem is ripe and more personalized medicine and companion diagnostics are beginning to appear. However, therapeutic area and research and development (R&D) strategies must adapt, as the transition from treatment to prevention will reduce public health spending on chronic conditions and acute oncology. Frontrunners will harness innovations through R&D in prevention and will develop new business models that capture the value of improved health and longevity across the pharma/payer/provider/tech silos (such as cancer-care insurance products provided by pharma/payer partnerships to cover the entire shifting value chain in oncology).

In the era of digital disruption, our 150 full-time faculty are transforming business strategies across the globe. Joining them are more than 20 Executives in Residence and over 100 adjunct faculty practitioners who come from leading corporations to share their wealth of experience. Informed in real time by the quickly shifting business landscape, they teach an ever-evolving curriculum with renowned strength in finance, investing, healthcare, climate, manufacturing, and supply chain. As digital transformations take place across these industries and new business models are enabled by fully digital environments, we are uniquely positioned to serve as the leading force in preparing the next generation to succeed in a digital economy.

"Technological innovation has led to an explosive era of transformation across industries, accelerating new ways of thinking and practicing business worldwide. Leveraging the computing and communications advances from the previous century to harness data and create powerful algorithmic capabilities, technological breakthroughs are being commercialized and implemented at scale. Leaders will need to react, adapt, and transition to avoid risk and maximize returns in the years ahead. This disruption, in turn, changes the skills the next generation will require to succeed in an increasingly digital economy."

AmplifyBio combines the strength and experience of multi-disciplinary teams to advance translational science, cell and gene therapies and next-generation medicines by offering pre-clinical models and support services to support customers in finding success through fast, efficient and safe drug development. The experienced team will work to create and optimize new platforms and technologies, focus on enabling the research, development and production of next-generation therapies and work at solving the challenges of scaling complex therapies.

Ms. Plousha Moore shared her thoughts on the next generation of healthcare leaders during a conversation with Russell Williamson, vice president and general manager of enterprise corporate accounts for Dublin, Ohio-based Cardinal Health.

DPM: As a baby boomer, I'm coming to the end of my career as an executive. It is very rewarding to see the next generations of healthcare leaders. They are managing a very different business than what we managed. When most of us came into healthcare, it was very physician-driven. We didn't have Internet access to look up our own symptoms and voice opinions about our diagnoses.

RW: Many healthcare systems across the country are trying to navigate this transforming and increasingly undefined healthcare landscape. What advice do you have for their leadership teams about preparing the next generation of leaders?

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