Healthcare and life sciences

Global industry agenda


Increasing health demands and the accelerating expectations of science and technology are steering many aspects of our health systems.

As access to health becomes an imperative across nations, digital and structural reinvention is a competitive and fiscal necessity.

How can healthcare and life sciences industry leaders seize opportunities today to win tomorrow?

Disruptive forces

Powerful global forces outside the control of any one company are compelling rapid change for healthcare and life sciences organizers and providers.


Multi-industry forces are a current reality


A demographic tsunami

The global population of the "oldest old" (those over 80) is expected to more than triple between 2015 and 2050 1

There are projected to be two billion people over the age of 60 by 2050 2

Rapid advancement of new technologies and a profusion of data

Medical data is expected to double every 73 days by 2020 3

60 billion medical images were generated in the US alone in 2015 4

A seven-fold increase in investment by the healthcare sector in IoT, software and services is projected by 2022 5


The acceleration of new science

Biotech hit a new record in venture capital funding – over USD 9.3 billion – in 2017 6

Global genomics market is expected to reach USD 23.8 billion by 2022, driven by research, new start-ups and growing focus on personalized medicine 7


The breakneck speed of invention, adoption and optimization

Consumers now control USD 330 billion annually in out-of-pocket healthcare expenses 8

Their choices could affect 61% of all healthcare spending 9

A shifting composition of markets and workers

Pharmacy company CVS Health purchased insurance company Aetna to place the consumer at the center of care delivery 10

23andMe won landmark victory US Food and Drug Administration approval to sell genetic tests and health risk reports to individuals 11

Digital technologies

Redefining possibilities in the healthcare and life sciences industry, digital technologies will compound disruption and have hyper-exponential impact.


Mobile icon

Mobile

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Mobile

Direct, anytime-anywhere access to the end user, which facilitates ongoing health-related status, decision-making and behavior pattern change


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Cloud

API icon

Cloud

Enablement of trusted environments that support rapid prototyping, development and deployment of convenient, user-friendly services


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Hybrid cloud

Cloud icon

Hybrid cloud

Enablement of the ecosystem to move beyond constraints of legacy technologies and expand across the industry


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Artificial intelligence
and analytics

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Artificial intelligence and analytics

Massive potential for next-generation learning, decision support and elimination of knowledge gaps


Blockchain icon

Blockchain

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Blockchain

Potential to address interoperability and reporting challenges while building trust and confidence and reducing costs


IoT icon

Internet of Things

IoT icon

Internet of Things

Continuous monitoring and sensing, in addition to recognizing patterns, which are key for early warnings and prompts
for action


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Cybersecurity

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Cybersecurity

Essential system protection for stability and resiliency, which provides confidence that trusted information is secure


automation icon

Automation, BOTs and advanced robotics

automation icon

Automation, BOTs and advanced robotics

Execution of routine physical and administrative tasks; augmentation of skills, knowledge and procedures for
expert users


Emerging consequences

Each manifestation of disruptive forces has the ability to shape a new future, and affect the healthcare provider, the enterprise and the market.


Number 1 graphic

Societal and
economic

Dramatic incongruence of hospital-centric structure to societal needs

Dramatic incongruence of hospital-centric structure to societal needs


The market, citizens and stakeholders are demanding reform to meet community needs; but hospital-centric structures and policies are not adapting to the rapid pace of change

In the UK, wait times for emergency and hospital operations have increased drastically in the last five years; over 2.5 million people waited four hours or more in the accident and emergency department in 2016-2017, up from 725,000 five years ago 12

An extra 200,000 people in the UK waited more than 18 weeks for an operation in 2016-2017 compared to 2011-2012 13

Number 3 graphic

Individuals and families are at risk

"Consumerism" is rising, creating new demands and expectations

"Consumerism" is rising, creating new demands and expectations


Rising consumerisn and demands for transparency shine new light into misaligned incentives and expectations; one's health can no longer be solely the responsibility of others

A 50-year-old male with type 2 diabetes can save (on average) USD 5,000 per year in pre-retirement health expenses by shifting from poorly managed to well-managed care; the difference in projected life expectancy is 8 years 17

In the new market-based healthcare landscape, buyers are looking for transparency, cost accountability and quality across the continuum and consumer choice based on real competition 18

63% of respondents indicate that healthcare consumerism is a factor with their patients, with 69% saying their patients are price shopping and 63% noting that individuals are becoming more involved in their medical decisions 19

Insurers are accelerating programs and policies that cut costs and push for value-based contracting as consumers demand more transparency in healthcare pricing 20

Number 5 graphic

Organizations are under duress

Incumbents are under duress with new competitive and security threats, and uncertain regulatory environments

Incumbents are under duress with new competitive and security threats, and uncertain regulatory environments


Continuous disruption from competitors, new entrants and regulators—coupled with entrenched inefficiencies and an explosion of new technology, data and security threats—challenges incumbents’ ability to adapt, while the bar on innovation and drug discovery continues to rise

In the US, 2017 was a record year for healthcare mergers; even still, more financially strong systems are attracting interest from larger or better-positioned systems 24

Healthcare data doubles every 24 months, with 80% invisible to current systems because it is unstructured 25

Healthcare has the highest data breach costs at nearly three times the mean per capita cost across all industries 26

In May 2017, the UK National Health Service was in lockdown when a ransomware attack crippled computer systems 27

Number 2 graphic

Inevitable fiscal crisis as costs rise faster than economic growth and tax-funded budgets

Inevitable fiscal crisis as costs rise faster than economic growth and tax-funded budgets


As aging populations increase and birth rates decline, the number of countries in which health and pension spending exceeds 15% of GDP is expected to nearly triple by 2040 — a massive commitment that can bankrupt economies 14

Government spending on health is projected to rise to 12% of GDP by 2060 across the 34 Organisation for Economic Cooperation and Development (OECD) countries 15

Global spending on health is expected to increase from USD 7.83 trillion in 2013 to USD 18.28 trillion in 2040 — nearly 2.5 times today’s cost 16

Fiscal constraints require significant improvement in operational efficiency and judicious spending, while continual budget cuts and protection of status quo tax base lead to longer wait times and potential rationing

As new players enter the healthcare ecosystem, how value is delivered and received will shift

Number 4 graphic

Financial accountability and risk shifting, erosion of safety nets

Financial accountability and risk shifting, erosion of safety nets


As safety nets continue to erode and premiums for nontraditional access exacerbate disparities, more personal ownership is required in meeting deductibles, selecting alternative services, and paying taxes and tariffs – factors that are increasingly consequential to individuals and families.

Catastrophic care, over which the consumer has little or no influence, accounts for 39% of healthcare costs 21

In 2017, annual family premiums for employer-sponsored health insurance have risen to an average of USD 18,764; workers’ average contribution to family premiums has increased more rapidly than the employers’ share since 2012 (32% vs. 14%) 22, 23

Number 6 graphic

Mismatch of skills and organizational cultures with current environment needs

Mismatch of skills and organizational cultures with current environment needs


Escalating provider shortages, increasing physician burnout and decreasing morale is exacerbating the shortage of caregivers attempting to deliver new capacity under existing programs—and medical training and delivery models have not kept pace with changing market demands

By 2030, global demand for health workers will rise to 80 million, outpacing supply and resulting in a worldwide shortage of 15 million health workers 28

Primary care physicians spend nearly six hours interacting with electronic health records during and after clinic hours 29

Medical practices in the US spend more than USD 15.4 billion annually to report quality measures, equating to USD 40,000 per physician per year 30

Doctors and researchers would have to read 29 hours each workday to keep up with new professional insights 31

Physician burnout has been declared a public health crisis in the US; to replace a doctor costs an estimated USD 800,000 to USD 1.3 million in recruitment, training and productivity costs—depending on the specialty 32

Pressing challenges

Acknowledge and act upon industry challenges
in the near term to stay competitive.


Processes, professions, models and structures across healthcare are in need of reinvention

Learn more

Processes, professions, models and structures across healthcare are in need of reinvention


  • Reinvention is necessary both with and across entities and the industry

  • Significant reduction—if not elimination—of gross inefficiencies is needed to lower costs and better match demand with a limited supply of resources

  • Overcoming the Nash equilibrium stalemate requires innovative policy, smart collaborations and compromise 33

Data must deliver meaningful insights and elicit action to improve care, quality, outcomes and innovation

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Data must deliver meaningful insights and elicit action to improve care, quality, outcomes and innovation


  • Healthcare organizations can turn existing data stores and new sources into meaningful insights to drive viable results

  • Although massive amounts of data are generated every minute of the day, an astonishing amount of that data is wasted; less than 1% of data is used, even though it has tremendous potential value 34

  • Incumbent organizations are insufficiently leveraging their institutional data and expertise—opening the door for disruptors and new entrants
  • Healthcare organizations need to apply data insights to better predict and match skills to tasks, engage and direct resources to the most appropriate settings, and allow professionals to operate at the top of their licenses—resulting in improved care, quality, outcomes and innovation

People must be digitally empowered and intuitively engaged in their health

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People must be digitally empowered and intuitively engaged in their health


The level of interconnectedness between care services, providers and patients must be intuitive and consumable to be effective in disease management and adherence—and to influence health and wellness

Use of widely available digital technologies can help facilitate continuous learning and change the way new drugs and therapies are researched, developed, tested, deployed and consumed by patients

Transformational opportunities

Technology-enabled opportunities to empower your organization to address pressing challenges and compete in the marketplace.


Create unrelenting focus on experience, convenience and health outcomes

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Create unrelenting focus on experience, convenience and health outcomes


  • Define the industry sector you will participate in; continually re-evaluate yourself against this changing market; make adjustments accordingly
  • Focus on improving operational efficiencies, increasing automation and reducing variability
  • Eliminate ineffective processes to drive change and reallocate resources to higher priority initiatives

Apply your data and knowledge of individuals to deliver high-quality care to the populations you serve

Learn more

Apply your data and knowledge of individuals to deliver high-quality care to the populations you serve


Take command of your enterprise data to drive costs, quality and engagement

Grow your institutions’ data and analytics skills, and make an industrial-strength platform decision that provides the flexibility, security and privacy needed to handle ever-changing industry requirements

Embrace new technologies to advance your mission and drive value

Learn more

Embrace new technologies to advance your mission and drive value


Work to satisfy the individuals and their families within your populations, and the employees, physicians, clinicians and professionals who support your ability to deliver on your mission

Become continuously restless and dissatisfied with your current performance—cultivate an ongoing drive to reinvent

Start here to assess your readiness for the future

Critical question 1

Make health a national, institutional and individual imperative

As populations age and birth rates decline, how do societies keep people as productive as possible, for as long as possible?

To maintain vibrant communities and economies, how does healthcare become seen as part of a larger whole—a system of systems, integrated equally into supporting social infrastructures, community values and individual accountability?

Critical question 2

Command your data

The notion of value requires an entirely different level of expectation for performance, evidence and insight. How can this be achieved?

How can inefficiencies be better identified and addressed with continuous mining and management of data, while using technology and tooling to automate repetitive processes, augment decision-making and scale scarce resources?

How do organizations that collect, store, manage or process data do so ethically and responsibly?

Critical question 3

Embrace new sciences

The pace of technological advances and discoveries is opening new opportunities for precision medicine, personalized treatments and innovative preventions. What can organizations do to build out these opportunities?

How do organizations address regulatory barriers and lags in data sharing processes that can prevent innovation from flourishing?

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