Novel combinations attempt to remake the health system
of the Fortune 50 involved in healthcare, up from 76% in 2013
of consumers have been treated at a health clinic in a retail setting
The number of deals in the US health services market in 2017
of consumers say the quality of tech companies’ health offerings is their top concern
The US health industry is in a period of unprecedented dealmaking. New business models are emerging from unexpected sources. These models, a mix of new entrants and traditional players, are coming together to offer new capabilities and models of care. Their arrival in the industry should prompt players new and old to reconsider their business models and their strategies or risk being left behind.
PwC’s Health Research Institute (HRI) has identified four new archetypes in the recent announcements of healthcare deals and partnerships: Vertical Integrators, Employer Activists, Technology Invaders and Health Retailers. Each can transform the New Health Economy in unique ways, but key challenges may limit their disruptive abilities.
Companies not involved in these deals should be prepared. Some players may find themselves out-competed or disintermediated. New capabilities and partnerships will help to ensure survival.
Workforces are likely to be a key differentiator for companies with capabilities that are similar to their competition. Advancements in technology will require the right people to make use of those technologies.
Invest in customer experience. Consumers are ready for healthcare to mirror other parts of their lives in terms of convenience, transparency, choice and affordability. Companies that invest in a deep data-driven understanding of their customers will win.
Focus on price. Employers, government and other players largely have focused on utilization over the past decade. Price is the next frontier.
The message is clear for players across the US health industry: Disrupt, or be disrupted. That was the theme of PwC’s 180° Health Forum held on May 8, 2018. At the Forum, thought leaders and executives from the health industry and beyond explored opportunities to disrupt the status quo as the New Health Economy evolves. The videos below provide a glimpse of some of the disruptive forces that are reshaping our industry.
US Health Industries Leader, PwC US
Health Services Leader, PwC US
US Pharmaceutical and Life Sciences Leader, PwC US