Page 6 - October 2018 Disruption Report Flip Book

DISRUPTION OF HEALTHCARE OJACNTUOABREYR 2018
DISRUPTION OF HEALTHCARE
The three market forces poised to disrupt the healthcare sector
In the Health Innovation Journal, Oliver Wyman’s Charlie Hoban, Josh Michelson and Terry Stone identify three disruptive forces that are poised to disrupt the healthcare sector.
INDUSTRY INTERRUPTED: A SPECIAL REPO
THREE MAIN CATEGORIES OF MARKET FORCES IMPACTING HEALTHCARE
ExHIBIT 1: THREE MAIN CATEGORIES OF MARKET FORCES
ECONOMIC & GOVERNMENT FORCES
• Regulatory changes to reimbursements, consumer subsidies, requirements for health plans, and licensing rules shape the rules of healthcare
• Sharing economy reduces personal ownership of assets and changes nature of employment
• Global economy encourages inter- and intra- border business transactions/exchange of goods and services
• Geopolitical instability will impact the rate of economic growth and geographical mobility for patients
TECHNOLOGICAL ADVANCES
• Big Data/Analytics provide greater leverage to reduce costs, increase supply, and improve outcomes via machine learning and artificial intelligence
• Cyber-physical systems (sensors/ Internet of Things) integrate
digital capabilities and physical surroundings, increase monitoring/ interactions with environment
• Healthcare advancements increase life expectancy and boost immunity (e.g. genomics, earlier interventions)
• Platforms permit portability and collaboration among people, data, and transactions (e.g. application programming interfaces, cloud)
SOCIOLOGICAL SHIFTS
• Time poverty amplifies customer demands for convenient access to products and services
• Quantified self and hyper- personalization allow for constant data collection, monitoring, and customization
• Longing for human connections as personal interaction becomes more scarce and valuable with infrequency
• Aging population and longer life expectancy increase interest in health and wellness
• Paradox of choice draws individuals to companies that simplify decision-making
• Trust shift from authority to crowd as alternative sources of advice
Source: Oliver Wyman
Source: Oliver Wyman analysis The authors wrote:
The real question is, "Who or what will be the
industry today. Each is already beginning
to move from ideas and hypotheses to
evidence and momentum. Taken together,
EDGING TOWARDS
provider side it means an office experience
that’s the same for a healthy millennial or
a person with complex, chronic illness. As
disruption that forces healthcare out of its increasingly less profitable comfort zone?"
CUSTOMIZATION
As an industry, healthcare has favored standardization. On the payer side, this means one-
As an industry, healthcare has favored
size-fits-all insurance plans with nearly identicsatal ncdoavredriazgateioann. dOnethtwe oprakyse;r osindeth, tehipsrmoveiadnesr We see three vectors along which healthcare’s
siindterirtumpteioansisalikneolyffitoceocecxupr.eEraiecnhcaeddthreasts’sesthe soanmee-sifzoer-faitsh-eaalllitnhsyurmanillcenpnlianlsowriathpnerasrolyn with core elements of the value trapped by the identical coverage and networks; on the
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the three provide the basis of a new, post- scale healthcare industry that operates in a fundamentally different way.
a result, it’s almost always too slow and unresponsive to serve the needs of the acutely ill, but it’s also too cumbersome,
expensive, and inconvenient for everyone
R