Healthcare is most challenging since it is most important to people. Rising costs, different standards of quality and continuous emergence of new diseases has presented unprecedented challenges to healthcare payers as well as providers. Cost of healthcare is forcing healthcare providers to redesign plans conducive for growth. Discovery of new drugs is important for pharmaceutical players to survive and generic drugs are driving growth in emerging markets. Healthcare cost disparity between the developed and developing worlds is rising with new business models adopted by the emerging market healthcare providers that provide end to end healthcare services.
Key trends shaping the industry:
Shifts to lifestyle related diseases: Rising middle class incomes in emerging market economies has raised the affordability factor due to which healthcare providers are shifting from infectious to lifestyle related diseases to raise healthcare spends.
Growing patient preferences: General awareness, rising literacy rates and higher workforce population is driving more population into the healthcare domain making healthcare providers going for careful customer segmentation to provide services.
Preventive Healthcare: Increasing health consciousness is leading patients to healthcare as a preventive measure. Innovative packaging of services is growing.
Burdened healthcare infrastructure and high costs in the West: High cost of healthcare in the West is encouraging medical tourism in emerging economies. But healthcare infrastructure in developing nations is falling short of resources.
Networks: Network of alliances among healthcare providers is increasing to ensure efficiency and better service offering in new markets.
Challenges facing the players involved in the industry:
Drug Discovery: With many patented drugs going to expire in the west, need for further and fruitful discovery is needed to sustain growth in developed markets. Pharmaceutical companies need to inculcate a culture of constant innovation in their organizations to ensure this happens at a steady pace.
Regulations: Drug manufacturers of developing markets are facing increased scrutiny by European and American regulations putting a bar on generic drug manufacturing and selling in developed markets. Careful designing of strategy is needed to keep the developed markets sustainable.
Cost of medical cover: Rising costs are hurting revenues by making healthcare payers to look for alternative choices. Innovative transformation of services to keep costs low through collaboration is needed among players to keep the industry growing.
New markets: With emerging economies witnessing higher growth in wages, devising a cost effective strategy and service offering is important to extend profitable healthcare services.
BMGI’s expertise in healthcare area:
BMGI has collaborated with numerous players in healthcare industry, be it a provider of healthcare, pharmaceutical firm or partners looking to invest in the area of healthcare tourism. These engagements have made BMGI expert in healthcare space to solve the most pressing issues challenging various players in the value stream. Our work has led to tangible and sustainable performance to players in the dynamic environment supported by a plethora of BMGI’s Health Consulting Services and Solutions.
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