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360 Degree CEO Perspective Of
The Global Healthcare Industry
The CEO’s Perspective Of The Complex Business Universe
TECHNOLOGY
Ensure a solid understanding of
emerging technologies: affects Competitive
and
opportunities; plan for potentially
Benchmarking
disruptive
technologies;
leverage
Emerging
new products
and/or applications for
growth Competition
Non
Customer
Industry
Integration
GLOBAL
Emerging
Opportunities
Cultural
Political
&
Regulatory
Identify unmet needs; tailor
CUSTOMER
products and services to
market
needs;
manageEconomic
brand
equity;
identify Trends
emerging
customer
Disruptive
segments; Industry
keep track of
Technologies
Expansion
changing cultural trends
Potential
CEO
Economic
Threats
Industry
Shifts
Competitor’s
Pinpoint
Customers
Growth
Functions
5/23/2017
Country
Risk
current
Economic
Identify Emerging
geographic
expansion
Trends &
opportunities,
monitor the political and
Technology
Issues
regulatory effects of doing business in
another country; understand cultural
implications and requirements
and future Competitive
economic
trends;
identify Strategy
growing
customer
Growth
segments;
take advantage of
emerging Team
opportunities; adjust
for currency changes
ECONOMIC
Growth
Process
Maintain an effectiveBEST
Growth Plan
for 3 - 5 years in the future; create
PRACTICES
and develop the Growth Team;
External
ensure Growth Team members
Industry
understand their functions and
Impact
contributions to growth; leverage
Career
INDUSTRY
industry
Growth Thought Leaders
Development
and best practices.
Maintain
a solid grasp ofDemoyour key
Industry
graphics
industries and the industries
that could
haveConvergence
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
Behavior
COMPETITIVE
Know
any
and
all
emerging
competition;
identify In-Direct
alliance
Competition
New benchmark your
partners;
growth
Applications
against
the
industry;
refine
competitive strategy; monitor market
perceptions,
changing
processes,
technologies, culture, etc.
2
Agenda
A
Global Healthcare Industry Outlook
B
Overview By Area
1. Top 10 Global Healthcare Trends
1.
Pharmaceuticals & Biotechnology
2.
The Triple Healthcare Crisis
2.
Clinical Diagnostics
3.
Shifting Healthcare Expectations
3.
Medical Devices
4.
Convergence in Healthcare
4.
Medical Technologies
5.
Healthcare Paradigm Shift
6.
Hot Spots & Emerging Geographies
7.
PESTLE Analysis
8.
Opportunity Analysis – Major Areas
5/23/2017
3
Top 10 Global Healthcare Trends
The Triple Healthcare Crisis
Shifting Healthcare Expectations
Global Healthcare
Industry Outlook
Convergence in Healthcare
Healthcare Paradigm Shift
Hot Spots & Emerging Geographies
PESTLE Analysis
Opportunity Analysis
5/23/2017
4
Top 10 Global Healthcare Trends
More
Info
2010 – 2020
High Impact
Projected
Impact on the
Healthcare
Industry
Low Impact
Low
5/23/2017
Certainty
High
5
Patients Become Healthcare Kings And Queens, Medical Communities
Become Interconnected, Doctor-Patient Relationship Goes Virtual
Major
Trend
1
Power Patient
Generation
2
Patients Become
Customers
3
Prevention
Before Cure
4
Personalised
Healthcare
5
Healthcare
Globe Trotters
6
Smarter
Drugs
7
Hospitals Go
Virtual
8
Innovation vs.
Knowledge
9
Devices Become
Monitors
10
CyberDocs
5/23/2017
2010
2015
Patients gain access to
health quality information
2020
Patient centred care
Baby Boomer retirement starts
Consumerism
holistic health and well being
One stop shop
Customised products
Implementation of IT
Early treatment
Genetic testing
Targeted clinical trials
Immediate Treatment abroad
becomes an option
Information based medicine
"medical tourism" crosses
the US$2 billion mark
War for medical talent
Disease management
Virtual face to face
doctor- patient relationship
Home services
Precise therapy becomes reality
Wellness care
Major diseases understood at molecular level
Non-invasive delivery
All departments/buildings within
hospitals are connected
Patients become
healthcare Kings and Queens
Presymptomatic diagnostics
& treatments
Private companies invest in
facilities and services abroad
Drug cocktails will enhance productivity, memory,
and physical performance
Medical communities (1°, 2° care)
become interconnected
Baby Boomer retirement starts
Remote patient monitoring
Perform routine diagnostics
with predictive precision
Regional/Country-wide
connectivity
Medical professionals keep
up with knowledge growth
Self-monitoring
Cheaper care available to
more people in need
6
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
The Size of the Problem – Quality
 15%
 Changing demographics
suffer an adverse event.
 8%
 Quality
of patients admitted to hospital
of adverse events result in death.
 6%
of
adverse
events
result
in
permanent disability.
 10-20%
Cost
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%
Demographics
Quality
because
of laboratory tests are requested
the
results
of
previous
investigations are not accessible.
5/23/2017
7
If Current Trends Hold, By 2050 Health Care Spending Will Almost
Double Claiming 20% – 30% Of GDP For Some Economies
$7,000
$7,000
Private Per Capita Spending (2007)
Public Per Capita Spending (2007)
Spending as % of GDP (2007)
Estimated Spending as % of GDP in 2050
30.0%
Unsustainable
Levels!!!
$6,000
$6,000
25.0%
$5,000
$5,000
$3,517
2
$717
$4,000
$717
15.0%
$1,684
$3,000
$1,684
$2,000
$1,000
$1,000
$854
$854
$3,000
$2,000
2
20.0%
$3,517
$4,000
3
$914
$914
$680
$680
$989
$989
$760
$760
$494
$1,018
$1,165
$494
$1,018
$1,165
$3,647
$2,884
$3,647
$2,884
$1,009
$0
$1,009
$449
1
$352
$449
$593
$352
$431
$593
$2,493
$2,493
$1,009
$2,665
$2,665
$1,009
$2,451
$2,693
$2,693
$2,451 $1,009
$1,009
$2,337
$2,527
$2,614
$2,110
$2,527
$2,337$1,009
$1,009
$2,469
$2,371
$1,927
$2,614
$1,009
$1,009
$2,110
$1,009
$1,009
$1,927
$2,469
$1,938
$1,009 $2,371
$1,009
$1,927
$1,009
$1,938
$514
$431
$1,829
$1,009
$1,927
$646
$514
10.0%
1
$646
5.0%
$1,609
$1,009
$1,829
5
$1,609
0.0%
$0
0
 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.
5/23/2017
8
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.
5/23/2017
30% of the population
consumes 90% of
health care resources
9
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
Power patients have increased access
to
computers
and
information
through multiple channels to seek and
analyse health information
Retailing
& Finance




Customer service
Comparison shopping
Self-service
Special offers
Manufacturing
& Distribution
Healthcare




Faster time to market
One stop shop
Anytime anywhere care
Supply chain integration
Entertainment
& Media


Customised products
Home services
Health care that is
customised to monitor,
diagnose, educate, and
intervene regardless of
location or time-will be
common.
Freedom to make
own decisions
5/23/2017
10
Convergence In Healthcare Enables Personalisation, Targeted Medicines,
Virtual Patient Monitoring, Enabling A Preventative Approach To Healthcare
Bio Chips: Controlled Released
Tailored TreatmentsGenomic/Proteomics based
Drug Delivery
Disease Management
Telemedicine
Health Management
Predictive tests
Gene Mapping &
Functional Analysis
Remote Patient Monitoring
Preventative Programmes
Nanotechnology
Delivery Systems
IT / Digital Information Systems
Life Sciences
Technology…….Enables it
Economics………………Require it
Demographics………….Demand it
Medical
Devices
5/23/2017
Medical
Technologies
11
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
Future Healthcare Systems
Suffer from the
Must Apply a
“RADAR” Syndrome
“GPS” Logic
Telehealth
for virtual
interactions
 Patient Appears
(falls sick)
 Patient is treated
“find it and fix it”
 Patient is
discharged
Web portals
to EHR
Systems
Patient then disappears from radar screen
Patient Scan
Sharable
Personal
Health
Records
Good Chronic
Disease care
 System oriented to acute illness
 Patient’s role not emphasised
 Follow up sporadic
Patient
Support
Tools
 Prevention overlooked
5/23/2017
Provider
Support
Tools
Home monitoring devices
Electronic Health Records (EHRs)
Personal Health Records
Chronic Disease Management Systems
Web- based education and
support
Personal Digital Assistants
Disease Management Program
12
A Modern Healthcare System Is On The Horizon Demanding
A Healthcare Paradigm Shift
...To
...From
Fragmented
Patient Flow
Integrated & automated
Invasive
Diagnosis &
Treatment
Less invasive, Preventative,
image based
Provider Centric
Focus
Patient Centric
Centralised – Hospital
Monitor
De-Centralised–Shift to Community
One Size Fits All
Approach
Personalised Medicine
Therapeutics/Diagnostics/
Devices
Tools
“Theranostics”
Treating Sickness
Objective
Preventing Sickness – “Wellness”
5/23/2017
13
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:Roche
and
Toyama
Chemical
enter
licensing
agreement to develop potential
breakthrough drug to treat
rheumatoid arthritis
Agriculture & Food Companies
Chemical Companies
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
Employers & Government
Healthcare Companies
Consumer Product Companies
Telecommunication 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.
5/23/2017
2010 : Orange launches "Connected Hospital", its
first e-healthcare offering designed to improve
patient comfort and care quality
14
A Look At The Future: Patient Centric Health & Wellness Care
EcoMedicine
Doctors
& Medical
Team
NanoMedicine
Web of Care
Pre-emptive Medicine
Coaches
&
Advocates
Regenerative Medicine
Friends
&
Family
eHealth
Advisor
Network
NanoCare
Online
Support
Communities
Digital Medicine
Mobile EHR
Implantable eCare
My Health & Wellbeing
Databases
Self Care
Diet
&
Nutrition
Humour
&
Joy
Lifestyle
& Stress
Reduction
Smart eHomes
Mind
Body &
Spirit
Health Robots
5/23/2017
Exercise
&
Fitness
Wearable BioSensors
Decision Support
15
Hot Spots And Emerging Geographies
Canada
Relatively
high
government
spending on healthcare, small
number of local market players,
sizeable market
U.S.
Huge
healthcare
market and growing,
large
opportunities,
niche players will be
more successful
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
Venezuela & Colombia
Constituting part of the
Andean Region are the
fastest growing countries
in many HC categories
due to large public
investment
Brazil & Mexico
Two largest healthcare
markets in Latin America and
growing at a sustained pace
5/23/2017
UK/Scandinavian Countries
High
government
spending
on
healthcare IT, large market, high
number of healthcare IT players.
India
Large market, low operating costs, excellent
local
skills,
high
local
competition,
Distribution hub to the Middle- and SouthEast of Asia
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.
Israel
Computerized
HMOs.
Project
to
determine
regulations/law
for
national EHR
Australia & New Zealand
High
government
spending
on
healthcare IT, small number of local
market players, increasing focus on
eHealth and digitisation
16
PESTLE Analysis – Timeline
2010
POLITICAL
ECONOMIC
2015
Growing Political Focus and
Pressure on Healthcare
TECHNOLOGICAL
ENVIRONMENTAL
5/23/2017
Spend per capita on health globally grows
Divide between the EU, US and rest of the world grows
Increasing pressure from patient groups
Raised consumer expectations
Medical Ethics
Health education
Information Based Systems
Internet
Pharmacogenomics
Direct to Patient Advertising
Drug Design
Biogenerics/biosimilars
Mergers and Acquisitions
Global ‘Not for Profit’ Pharma
Supply for developing countries
Patient Centric Healthcare
Personalised healthcare
Therapeutics>Theranostics (Rx/Dx)
LEGAL
Increasing harmonisation
Increase influence by regulatory bodies
Reduction in pharma growth
(business model changes)
Ageing population
SOCIAL
2020
Health card / Smart Cards
Health awareness (prevention)
Increasing customer awareness
Genomic Drugs
Combined diagnostics and therapeutics
Customised treatments
Genetic Discrimination
Privacy
Faster Drug Approvals
Medical Errors / Safety
Development of specialist therapy providers
Biotech companies transition to Pharma companies
Impact of HIV and other pandemics
17
Opportunity Analysis – Major Areas (Europe), 2010-2012
High Revenues
Projected
Revenues
In 2012
($ Billions)
Low Revenues
High
Low
Growth Rate (2010-2012)
5/23/2017
18