1. The health care industry tackles the opioid crisis. Opioid overdoses are now the leading cause of death for U.S. adults younger than 50. And while numerous agencies from municipalities to states are moving to change the status quo, the need is for all segments of health care to get involved is essential. From prescribers to payers to the pharmaceutical industry, all the players in the health care field need to get involved to find a solution.
12. Tax Reform. If the corporate tax rate is indeed reduced from 35 percent to 20 percent, as Republicans propose, U.S. companies might want to change existing practices when it comes to where to invest in operations, how to structure their organizations and where to hold profits. And a shift to a pure territorial tax system would result in foreign earnings being taxed in the country where the profits were generated, but not a second time when earnings are brought back into the U.S. That could change whether, and to what degree, earnings are repatriated.
11. Real-world evidence challenging the pharmaceutical industry. According to the report, changes at the FDA will drive changes by pharmaceutical and life sciences companies on their approach to collecting and using real-world data gathered outside of randomized controlled trials—which could potentially save the system millions of dollars. The 21st Century Cures Act will require the FDA to consider additional uses of real-world evidence for drugs and medical devices, including incorporating this data to support new indications.
10. Health care's endangered middlemen. There's a lot more scrutiny coming of intermediaries such as pharmacy benefit managers and wholesalers, who are going to have to prove their value and success in creating efficiencies or risk losing their place in the supply chain. Particularly in light of such disruptions as Amazon's entry into the fray, those intermediaries will have to evolve to be more than just a pass-through serving a contracting function, by increasing price transparency and taking responsibility for more of the value chain.
9. Meet your new coworker, artificial intelligence. Ironically, a heavier use of AI could help put the human touch back into health, the report says, by reducing bureaucracy and administrative duties that can take time away from personalized care. Repetitive tasks in particular may benefit from the introduction of AI and machine learning to replace or supplement human interaction. Companies are bringing in AI to speed up such administrative tasks as screening drug candidates, streamlining finance processes, adverse event reporting and more.
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8. Patient experience as a priority and not just a patient portal. With consumers today accustomed to sophisticated shopping experiences, in which retailers harness consumer information to tailor how they interact with customers, health care is going to have to catch up. As the health care industry moves away from paying more for volume and toward paying more for value, health companies will need to take this same approach and make strategic investments to improve patient experience.
7. Securing the Internet of Things. Cybersecurity breaches have emerged as a major industrywide problem over the past year, including a 525 percent increase in medical device cybersecurity vulnerabilities reported by the government. That means that hospitals will have to be prepared to take—and follow through on—quick, decisive action to maintain data privacy, secure the thousands of connected medical devices on their networks and protect patients.
6. Continuing complications to health reform. Republicans may have lost the window of opportunity for repeal and replacement of the Affordable Care Act through a single piece of legislation, but that doesn't mean they're giving up. Among potential actions to come are continued efforts to cut and cap federal Medicaid spending, expand access to lower-premium health insurance, loosen ACA consumer protections, soften the employer and individual mandates and repeal ACA taxes and fees.
5. Medicare Advantage swells. Even though Medicare Advantage is projected to cover nearly 21 million people in 2018, providing a new competitive opportunity for health insurers, it won't live up to its potential if people don't know it's there. Insurers are going to have to make a push to raise awareness of options, as well as tailor those options to best meet patient needs.
4. Natural disasters create long-lasting devastation. Hurricanes and wildfires can wreak havoc on health systems, manufacturing supply chains, and financial operations both in the short and long term—witness the shortages in small IV bags and drugs manufactured in Puerto Rico in the wake of Hurricane Maria. Health systems and pharmaceutical companies that conduct proactive scenario planning can recover faster and make better evidence-based decisions instead of taking premature actions that could do harm in the long term.
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3. Price transparency moves to the statehouse. More than 30 states are now considering legislation that would directly control drug prices and scrutinize cost changes much more closely. And just because it happens in a state doesn't mean it can't rise to the national level, so the industry needs to keep up with local actions.
2. Social determinants come to the forefront. The U.S. spends more on health care per capita per year than any other nation, but gets relatively poor returns for its investment. To improve health while saving money, the report says, "the industry needs to expand the borders of healthcare. This means thinking beyond the four walls of the hospital and looking holistically at the full profile of a patient, beyond their specific health issue."
1. The health care industry tackles the opioid crisis. Opioid overdoses are now the leading cause of death for U.S. adults younger than 50. And while numerous agencies from municipalities to states are moving to change the status quo, the need is for all segments of health care to get involved is essential. From prescribers to payers to the pharmaceutical industry, all the players in the health care field need to get involved to find a solution.
12. Tax Reform. If the corporate tax rate is indeed reduced from 35 percent to 20 percent, as Republicans propose, U.S. companies might want to change existing practices when it comes to where to invest in operations, how to structure their organizations and where to hold profits. And a shift to a pure territorial tax system would result in foreign earnings being taxed in the country where the profits were generated, but not a second time when earnings are brought back into the U.S. That could change whether, and to what degree, earnings are repatriated.
11. Real-world evidence challenging the pharmaceutical industry. According to the report, changes at the FDA will drive changes by pharmaceutical and life sciences companies on their approach to collecting and using real-world data gathered outside of randomized controlled trials—which could potentially save the system millions of dollars. The 21st Century Cures Act will require the FDA to consider additional uses of real-world evidence for drugs and medical devices, including incorporating this data to support new indications.
10. Health care's endangered middlemen. There's a lot more scrutiny coming of intermediaries such as pharmacy benefit managers and wholesalers, who are going to have to prove their value and success in creating efficiencies or risk losing their place in the supply chain. Particularly in light of such disruptions as Amazon's entry into the fray, those intermediaries will have to evolve to be more than just a pass-through serving a contracting function, by increasing price transparency and taking responsibility for more of the value chain.
9. Meet your new coworker, artificial intelligence. Ironically, a heavier use of AI could help put the human touch back into health, the report says, by reducing bureaucracy and administrative duties that can take time away from personalized care. Repetitive tasks in particular may benefit from the introduction of AI and machine learning to replace or supplement human interaction. Companies are bringing in AI to speed up such administrative tasks as screening drug candidates, streamlining finance processes, adverse event reporting and more.
Advertisement
8. Patient experience as a priority and not just a patient portal. With consumers today accustomed to sophisticated shopping experiences, in which retailers harness consumer information to tailor how they interact with customers, health care is going to have to catch up. As the health care industry moves away from paying more for volume and toward paying more for value, health companies will need to take this same approach and make strategic investments to improve patient experience.
7. Securing the Internet of Things. Cybersecurity breaches have emerged as a major industrywide problem over the past year, including a 525 percent increase in medical device cybersecurity vulnerabilities reported by the government. That means that hospitals will have to be prepared to take—and follow through on—quick, decisive action to maintain data privacy, secure the thousands of connected medical devices on their networks and protect patients.
6. Continuing complications to health reform. Republicans may have lost the window of opportunity for repeal and replacement of the Affordable Care Act through a single piece of legislation, but that doesn't mean they're giving up. Among potential actions to come are continued efforts to cut and cap federal Medicaid spending, expand access to lower-premium health insurance, loosen ACA consumer protections, soften the employer and individual mandates and repeal ACA taxes and fees.
5. Medicare Advantage swells. Even though Medicare Advantage is projected to cover nearly 21 million people in 2018, providing a new competitive opportunity for health insurers, it won't live up to its potential if people don't know it's there. Insurers are going to have to make a push to raise awareness of options, as well as tailor those options to best meet patient needs.
4. Natural disasters create long-lasting devastation. Hurricanes and wildfires can wreak havoc on health systems, manufacturing supply chains, and financial operations both in the short and long term—witness the shortages in small IV bags and drugs manufactured in Puerto Rico in the wake of Hurricane Maria. Health systems and pharmaceutical companies that conduct proactive scenario planning can recover faster and make better evidence-based decisions instead of taking premature actions that could do harm in the long term.
Advertisement
3. Price transparency moves to the statehouse. More than 30 states are now considering legislation that would directly control drug prices and scrutinize cost changes much more closely. And just because it happens in a state doesn't mean it can't rise to the national level, so the industry needs to keep up with local actions.
2. Social determinants come to the forefront. The U.S. spends more on health care per capita per year than any other nation, but gets relatively poor returns for its investment. To improve health while saving money, the report says, "the industry needs to expand the borders of healthcare. This means thinking beyond the four walls of the hospital and looking holistically at the full profile of a patient, beyond their specific health issue."
1. The health care industry tackles the opioid crisis. Opioid overdoses are now the leading cause of death for U.S. adults younger than 50. And while numerous agencies from municipalities to states are moving to change the status quo, the need is for all segments of health care to get involved is essential. From prescribers to payers to the pharmaceutical industry, all the players in the health care field need to get involved to find a solution.
Uncertainty and risk are the bywords for the health industry next year, and health organizations will have to stay on their toes to cope with all the changes in store. That's according to a report from PricewaterhouseCoopers' Health Research Institute, which said that in order to keep their footing during what looks to be another year beset by everything from tax and health care changes to natural disasters, health organizations "should consider seeking greater cross-sector collaboration, fresh strategic investments and new efficiencies to build enterprise resilience." In coming up with its "dirty dozen" trends, HRI analyzed surveys of U.S. consumers, provider, insurer and pharmaceutical executives; analyzed in-depth interviews with industry leaders; and examined data and policy trends. And one thing that emerged overall is the need to act, lest the industry be run over in the middle of the road. "In year two of the Trump administration, stakeholders cannot hold back and take a 'wait and see' approach," Kelly Barnes, PwC US Health Industries and Global Health Industries consulting leader, says in the report. Barnes adds, "They need to lean into the changes and proactively consider key areas for investment, forge partnerships and pursue efficiencies that enable the delivery of better health care to all. Companies that look beyond the daily news cycle churn and social media feeds to focus on their customers while remaining nimble in the face of change are most likely to succeed in 2018."
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