While this sector has not traditionally been consumer-facing, consumers and patients will increasingly be responsible for the cost of care – and will therefore become more discerning when it comes to making purchasing decisions. This will result in a growing need for high customer satisfaction levels, while keeping costs manageable. At the same time, enabling access will be crucial, given that advanced forms of care may be out of reach for many consumers. There will be a growing focus on vertical integration strategies, while healthcare IT companies will increasingly need to invest in data and analytics solutions which will help their clients compete.
Company specific thoughts:
Both CVS and Walgreens Boots Alliance are pursuing vertically integrated strategies, although they are adopting different approaches to achieve this: CVS’s planned acquisition of Aetna will bring the company its own payer solution, while WBA is taking a partnership approach. Further afield, Medidata Solutions and Cerner are both positioning themselves to take advantage of big data, while Rite Aid Corporation has opted to diversify away from defensive healthcare via a recent transaction with a private grocery chain. Conversely, drug wholesalers may find themselves at risk if they are not able to develop more unique value propositions.
Healthcare: Up close
The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.