As healthcare markets mature, an increasing number of medical device, diagnostic, and pharmaceutical/ biotech manufacturers are dealing with product commoditization and competition from low cost competitors.
Healthcare providers and health plans are planning for and reacting differently to the continued shift from a fee-for-service to a value-based care environment. Many sophisticated health systems are aligning their strategies, infrastructures, and staff to be at the leading the charge of this movement, while others are maintaining the fee-for-service status quo until external pressures force a change.
The advent of patent cliffs, value-based care, and increasing cost pressures in the face of heightened levels of investment have spurred numerous articles evaluating the healthcare industry's innovation gap. The task of filling this gap while remaining focused on near-term shareholder value has increased M&A activity across the industry.
Data collection and storage through Electronic Medical Records (EMRs) promises faster, safer, cheaper patient management, while data analytics and software solutions have already helped to identify best practices, establish new standards of care, improve accuracy of patient diagnosis, and enable better decision-making.