Mals Musings: What Business Are We In Again?
At the start of a new decade, speculations are rife about the future prospects for the healthcare sector. What does the future hold for us?
By on May 5, 2010At the start of a new decade, speculations are rife about the future prospects for the healthcare sector. What does the future hold for us? I have a fundamental problem with futurologists and predictions of the future. The future is not set, the future is to be created, and therefore our future depends not on extrapolation of the past and present but on how we react to things.
Nonetheless, there are some glaring facts and converging circumstances that should not be ignored. Change is upon us, and we must be paranoid that we are missing the writing on the wall. I believe the future is bright, or at least the future can be brightas long as we are prepared to create it
Having said all that, there are some trends that are worthy of consideration as we speculate about the future. Change is good for those prepared and a nightmare for the rest.
Customers. They are under increasing pressures about the nature of their relationships with healthcare companies. They are savvier in scrutinizing value offered and the use of technology; i.e., patients electronic record and data availability makes the sector more performance driven. They will become more demanding and power will continue to be diversified as nurses and theater assistants play an increasingly significant role in decision-making
Patients. They are online and informed. This can be a blessing when they are lobbying on our behalf or a disaster when their mass is turned in our direction. They are talking to one another more, and every mistake we make is exaggerated. They are on Facebook and YouTube and, unfortunately for us, they appear to trust these outlets more than they trust us. The solution is not a YouTube or a Facebook page, but to accept that getting our value proposition right and acting ethically has moved swiftly from nice-to-do to must-do.
Marketing. Not looking good, declining budgets and departments. The size, scope, and role of marketing are in decline. Today, marketing is being centralized, more as a drive to save cost than to improve effectiveness. If marketing does not get its act together, the value that marketing adds will be questioned. To cope with changes in our environment, marketing must change
Government. Governments are determined to share the rising cost of healthcare with us and, for our cousins in the medical device sector, they will be introduced to the chores of demonstrating value, pharma-style. Apparently, they are keen on continuous innovation. We must be wary of falling for the sound bites. Our innovations and solutions will come under scrutiny as governments try to balance their books
Products. Blockbusters as we knew them are not about to make a comeback. The new generation products will be expensive solutions for niche markets. The collaborations with biotech firms will continue. We are in the orphan drug era, expensive solutions for the few rather than inexpensive solutions for the many.
Social trends. Increasing acceptability of social drugs for enhancing mental, physical and sexual performance. In the end, we will have 80-year-olds who want to feel and look like 18-year-olds, a new opportunity with new ethical challenges. What business are we in? Are we restoring health and or are we enhancing and restoring youth? This question will get louder in the coming decade and will present us with a double-edged sword.