Q1 2020: Healthcare Executives Foresee Significant Change
Following more than 200 meetings by FSI’s senior team, we identified a shared perspective on the opportunities and challenges for the year ahead. Executives at the world’s largest companies, leading IDNs, as well as highly innovative new ventures are focusing on similar challenges.
Executives are optimistic about healthcare opportunities, especially the potential for growth driven by an insatiable demand for care. This reflects, in part, population demographics shifting to cohorts who consume healthcare disproportionately.
The rate of innovation is expected to remain high. Foremost will be efforts to capitalize on the capabilities of data analytics and AI/ ML to enhance every sector of healthcare, including drug discovery, clinical trials, medical devices, diagnostics and the patient experience.
Healthcare companies will have access to the capital required to fund both organic and inorganic growth.
Healthcare executives are dealing with significant challenges to their businesses. Notable is a consensus that 2020 will require strategic initiatives to deal with the increasingly prevalent pressure on the prices of healthcare products and services.
Executives are exploring value-based pricing alternatives to retain/increase their market share.
Expecting lower price levels overall, companies are reviewing their Go to Market Strategies. Account prioritization, channel mix, sales force structure, and alternative marketing strategies are all under consideration. Executives are striving to evolve to more cost-effective business models.
FSI’s meetings with senior healthcare executives found those leading the industry are intent on continuing to provide high quality care by embracing both the opportunities and the challenges foreseen in 2020 and beyond.