360 Degree CEO Perspective Of The Global Healthcare Industry

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360 Degree CEO Perspective Of The Global
Healthcare Industry
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The CEOs Perspective Of The Complex Business
Universe
Identify geographic expansion opportunities,
monitor the political and regulatory effects of
doing business in another country understand
cultural implications and requirements
Ensure a solid understanding of emerging
technologies affects and opportunities plan for
potentially disruptive technologies leverage new
products and/or applications for growth
Maintain an effective Growth Plan for 3 - 5 years
in the future create and develop the Growth
Team ensure Growth Team members understand their
functions and contributions to growth leverage
industry Growth Thought Leaders and best
practices.
CEO
Maintain a solid grasp of your key industries and
the industries that could have an impact on your
business identify factors that are causing new
trends and changing buying behaviours address
industry convergence and integration identify
opportunities to expand within the market
Identify unmet needs tailor products and
services to market needs manage brand equity
identify emerging customer segments keep track
of changing cultural trends
Know any and all emerging competition identify
alliance partners benchmark your growth against
the industry refine competitive strategy
monitor market perceptions, changing processes,
technologies, culture, etc.
Pinpoint current and future economic trends
identify growing customer segments take
advantage of emerging opportunities adjust for
currency changes
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Agenda
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Global Healthcare Industry Outlook
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Top 10 Global Healthcare Trends
2010 2020
High Impact
Projected Impact on the Healthcare Industry
Low Impact
High
Low
Certainty
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Patients Become Healthcare Kings And Queens,
Medical Communities Become Interconnected,
Doctor-Patient Relationship Goes Virtual
Major Trend
2010
2020
2015
Patient centred care
1 2 3 4 5 6 7 8 9 10
Patients gain access to health quality information
Patients become healthcare Kings and Queens
Baby Boomer retirement starts
Consumerism
One stop shop
Home services
Customised products
holistic health and well being
Implementation of IT
Precise therapy becomes reality
Early treatment
Genetic testing
Information based medicine
Wellness care
Presymptomatic diagnostics treatments
Targeted clinical trials
Major diseases understood at molecular level
Private companies invest in facilities and
services abroad
"medical tourism" crosses the US2 billion mark
Immediate Treatment abroad becomes an option
Non-invasive delivery
Drug cocktails will enhance productivity,
memory, and physical performance
Medical communities (1, 2 care) become
interconnected
Regional/Country-wide connectivity
All departments/buildings within hospitals are
connected
Baby Boomer retirement starts
Medical professionals keep up with knowledge
growth
War for medical talent
Self-monitoring
Remote patient monitoring
Disease management
Virtual face to face doctor- patient
relationship
Perform routine diagnostics with predictive
precision
Cheaper care available to more people in need
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Healthcare Is Challenged By Three Interlocking
Crises That Make Present Healthcare Systems
Unsustainable

• Healthcare is challenged by three interlocking
  crises that make present healthcare systems
  unsustainable
• Rising costs
• Changing demographics
• Quality

The Size of the Problem Quality

• 15 of patients admitted to hospital suffer an
  adverse event.
• 8 of adverse events result in death.
• 6 of adverse events result in permanent
  disability.
• 10-20 of all adverse events are caused by
  medication errors.
• 10-15 of hospital admissions occur because
  providers do not have access to previous care
  records.
• 20 of laboratory tests are requested because the
  results of previous investigations are not
  accessible.

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If Current Trends Hold, By 2050 Health Care
Spending Will Almost Double Claiming 20 30 Of
GDP For Some Economies
Unsustainable Levels!!!

• In almost all countries worldwide, per capita
  healthcare spending is rising faster than per
  capita income.
• No country can spend an ever-rising share of its
  output on health care, indefinitely. Spending
  growth must eventually fall in line with growth
  in per capita income.

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Balance Between Young And Old Is Shifting, Ageing
Related And Chronic Diseases Increase, People
Living With Multiple Long Term Conditions

• In 2000, 10 (606 million) of the global
  population was aged 60. By 2050 this will be
  more than 21 (2 billion).
• People aged 60 utilise 3-5 times more healthcare
  services than younger people.
• 75 of people aged 60 have one chronic
  condition, while 50 have two or more chronic
  conditions.
• Chronic diseases account for more than 60 of all
  health care spending.
• Health economics dictate a shift in spending
  away from treating and towards predicting,
  diagnosing and monitoring.

30 of the population consumes 90 of health care
resources
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Consumer Experiences In Other Markets Affecting
Expectations From Healthcare
Greater variety of providers, products and
services e.g. expensive health plans and
alternative medicine services
Healthcare
Power patients have increased access to computers
and information through multiple channels to
seek and analyse health information
Health care that is customised to monitor,
diagnose, educate, and intervene regardless of
location or time-will be common.
Freedom to make own decisions
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Convergence In Healthcare Enables
Personalisation, Targeted Medicines, Virtual
Patient Monitoring, Enabling A Preventative
Approach To Healthcare
Disease Management
Bio Chips Controlled Released
Telemedicine
Tailored Treatments- Genomic/Proteomics based
Health Management
Drug Delivery
Predictive tests
Remote Patient Monitoring
Gene Mapping Functional Analysis
Preventative Programmes
Nanotechnology
Delivery Systems
IT / Digital Information Systems
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Riding On A Wave Of Technical Innovations
Healthcare Will Change From A Find It And Fix
It System To A Wellness Tracking System
Current Healthcare Systems Suffer from
the RADAR Syndrome
Future Healthcare Systems Must Apply a GPS
Logic
Patient Scan Good Chronic Disease care

• System oriented to acute illness
• Patients role not emphasised
• Follow up sporadic
• Prevention overlooked

Home monitoring devices Personal Health Records
Web- based education and support
Electronic Health Records (EHRs) Chronic Disease
Management Systems Personal Digital
Assistants Disease Management Program
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A Modern Healthcare System Is On The Horizon
Demanding A Healthcare Paradigm Shift
...To
Diagnosis Treatment
Less invasive, Preventative, image based
Invasive
Therapeutics/Diagnostics/ Devices
Theranostics
Tools
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Threats Arise From Unconventional Players Outside
The Traditional Healthcare Boundary
Biotech is the changing face of agriculture.
Biotech crops were planted in 18 countries in
2004. By 2010, it is projected that 15 million
farmers will grow genetically modified crops on
up to 375 million acres in 30 countries.
2010 Integrated Healthcare Management in the
US has been launched as the systematic
application of processes and shared information
to optimise the coordination of benefits and care
for the healthcare consumer
Agriculture Food Companies
Chemical Companies
Employers Government
2010Roche and Toyama Chemical enter licensing
agreement to develop potential breakthrough drug
to treat rheumatoid arthritis
Telecommunication Companies
Consumer Product Companies
2010 SUPERMARKETS in the UK are increasingly
becoming one-stop-shops for everything by
branching out into healthcare, with everything
from in-store pharmacies to blood tests, blood
pressure checks and health checks on your lungs.
2008 Virgin Group launched a new healthcare
network. The first of six one-stop shops
clinics will offer extra NHS and private services
including dentistry, screening, a pharmacy and
complementary therapies alongside GP practices.
Ultimately, offering wider options for patients.
2010 Orange launches "Connected Hospital", its
first e-healthcare offering designed to improve
patient comfort and care quality
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A Look At The Future Patient Centric Health
Wellness Care
EcoMedicine
NanoMedicine
Pre-emptive Medicine
PatientGP
Regenerative Medicine
Digital Medicine
My Health Wellbeing Databases
Self Care
Diet Nutrition
Humour Joy
Lifestyle Stress Reduction
Mind Body Spirit
Exercise Fitness
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Hot Spots And Emerging Geographies
Canada Relatively high government spending on
healthcare, small number of local market players,
sizeable market
UK/Scandinavian Countries High government
spending on healthcare IT, large market, high
number of healthcare IT players.
Hong Kong High government spending on healthcare,
small domestic market, gateway to China
Germany/Switzerland High spending on healthcare,
large market with not too many market players,
increasing focus on eHealth and digitisation
U.S. Huge healthcare market and growing, large
opportunities, niche players will be more
successful
India Large market, low operating costs,
excellent local skills, high local competition,
Distribution hub to the Middle- and South-East of
Asia
Venezuela Colombia Constituting part of the
Andean Region are the fastest growing countries
in many HC categories due to large public
investment
Israel Computerized HMOs. Project to determine
regulations/law for national EHR
Sub-Saharan Africa Limited current government
spending on healthcare IT, increases planned in
the future. Private sector developing increasing
focus on eHealth. Moderate number of players
mainly operating from South Africa.
Australia New Zealand High government spending
on healthcare IT, small number of local market
players, increasing focus on eHealth and
digitisation
Brazil Mexico Two largest healthcare markets in
Latin America and growing at a sustained pace
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PESTLE Analysis Timeline
2010
2020
2015
POLITICAL
Growing Political Focus and Pressure on
Healthcare
Increase influence by regulatory bodies
Increasing harmonisation
Spend per capita on health globally grows
ECONOMIC
Reduction in pharma growth (business model
changes)
Global Not for Profit Pharma Supply for
developing countries
Divide between the EU, US and rest of the world
grows
SOCIAL
Patient Centric Healthcare
Ageing population
Health awareness (prevention)
Increasing pressure from patient groups
Personalised healthcare
Medical Ethics
Raised consumer expectations
Health education
Increasing customer awareness
TECHNO-LOGICAL
Information Based Systems
Genomic Drugs
Internet
Pharmacogenomics
Combined diagnostics and therapeutics
Direct to Patient Advertising
Health card / Smart Cards
Customised treatments
Drug Design
LEGAL
Genetic Discrimination
TherapeuticsgtTheranostics (Rx/Dx)
Privacy
Biogenerics/biosimilars
Faster Drug Approvals
Medical Errors / Safety
ENVIRON-MENTAL
Development of specialist therapy providers
Mergers and Acquisitions
Impact of HIV and other pandemics
Biotech companies transition to Pharma companies
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Opportunity Analysis Major Areas (Europe),
2010-2012
High Revenues
Projected Revenues In 2012 ( Billions)
Low Revenues
High
Low
Growth Rate (2010-2012)