Innovative Healthcare Models Transforming The Industry

By Christine Kern, contributing writer

Value-based care delivery and consumer-centric approaches encourage novel solutions and add value.

The emergence of new technologies combined with a shift to emerging care compensation models is transforming the healthcare industry, and value-based care delivery and consumer-centric approaches are encouraging novel solutions and added value for customers, according to analysis from Frost & Sullivan’s Transformational Health Team.

In fact, healthcare is poised on the brink or rapid transformation, and the rapid digitization of products, services, and commerce models is “democratizing current healthcare systems,” breaking down barriers that were previously held in place by high gatekeeper costs.

The findings indicate these market shifts are pushing medtech and pharma companies to abandon former models and pursue new, customer-centric service solutions and CEOs should be adopting new innovative business models to monetize emerging opportunities. Frost & Sullivan’s Transformational Health Industry Analyst Kamaljit Behera explained, “Collaboration and open-source innovation are key ingredients for future restructuring. Companies such as Apple, Google, IBM Watson and Intel will continue to compete outside their domain, forcing traditional healthcare companies to change their dominant business models.”

In fact, the report asserts, actionable health outcome data will be the new battleground for healthcare as Walmart moves to enter the primary care arena and Medtronics’ Diabetes Management adopts an intelligent-based solutions business model.

Models like crowdsourcing and mass customization will also see an increase due to healthcare consumerism, which also drives price transparency and the culture of open innovation. A PricewaterhouseCoopers’ (PwC) report found earlier this year the growing demand for value has countered increasing healthcare costs, with demand for consumer friendly services adding to the mix.