Archive for August, 2015

Can Innovation Trump Consolidation in Healthcare?

At the ACA party, there are 15 pharma companies standing around a room with only 10 chairs. Which means that when the music stops, five of them are SOL.Party!

That’s the future for pharma in a world in which all providers are at-risk and outcomes data are more important than volume discount pricing when it comes to therapy decisions.

Right now, the most common business strategy for healthcare companies managing the changes brought on by the Affordable Care Act has been consolidation. Everywhere in the system, players are merging. PBMs are consolidating and health systems are gobbling up every type of healthcare service, from physician practices to labs, urgent care to long-term care facilities and community hospitals in an effort to become large, integrated health networks (IDNs).

And, why? Why are they doing this?

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