The need for innovation within pharma now goes beyond just product R&D. Innovation today must include business model innovation.
This could lead to an unexpected left-hand turn in your near future…
Moving beyond the pill?
It has become de rigueur for pharma executives to talk about “moving beyond the pill,” something closerlook has been championing for several years. This new way of thinking includes offerings like disease management, patient engagement, companion diagnostics, etc.
That’s all well and good. However, a critical part of this discussion, especially in light of healthcare reform changes in healthcare delivery and payment, is how pharma will get paid for all of this. Paid for the “value-add” investments, yes, but even paid for the core product if and when it becomes commoditized.
Another way to ask the question: Who will be the buyer in five years?
More and more health systems (buyers) are becoming vertically integrated. These vertically integrated systems are achieving the most productive and most streamlined patient experience and the best outcomes at the lowest cost. Given these results, the trend of provider consolidation will continue across the country. Numerous health systems and policymakers are advocating this integrated approach.