TMCnet News
New Oliver Wyman Report Details Disruptive Market Shifts in HealthcareLike other industries before it, healthcare is bending to consumer-centric pressures. According to The Marketplace Revolution, a new report from Oliver Wyman (News - Alert), consumerism is powering a complete remodel of the healthcare market. But the transformation is about much more than patient-centric innovations. The true revolution, the paper establishes, is the emergence of an entirely new business design, one that ignores the boundaries and economic framework of the existing healthcare market to deliver health and wellness on consumers' terms. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160503006265/en/ 
(Graphic: Business Wire) As detailed in the report, this next-generation business design is driven by consumer needs, not sick-care codes and plan design; and it will enable Health Market 2.0, in which multiple industries converge to create a new consumer health, wellness, and better-living marketplace. According to Oliver Wyman analysis, the rise of this business model will shape a new $6 trillion health, wellness and better-living market - one that is dramatically more effective with 40 percent better value and 100 times improved consumer experience. "While we are talking about creating new tech-enabled market spaces, the biggest near-term impact will come from connecting adjacent markets," said Tom Main, Oliver Wyman partner/founder of the Oliver Wyman Health Innovation Center and co-author of the report. "By connecting health, wellness, and lifestyle, we begin to break the economic death spiral of our fee-for-service sick-care system and enable the new generation of health-and-wellness companies to meet consumers where they are, while getting our health system back on a sustainable track." What does this new business design look like? Drawing on extensive cross-industry research and analysis, The Marketplace Revolution (News - Alert) defines the business design that has been utilized by companies such as Uber, Amazon, and Airbnb to disrupt other industries, and now is being employed by an increasing number of healthcare companies and organizations. The model revolves around three essential elements:
"Single-chain models only address a small part of consumer needs. The power of the multi-chain design is it connects the dots for the consumer to put the health and wellness market on their terms," Main said. The design is already being deployed with real results in the chronic care space. The report details how incumbents and new technology players have teamed up to create a new, multi-chain chronic care hub. In this hub, digital and mobile technologies are converging with biometric monitoring devices, cloud-based data aggregation, and highly personalized health coaching to create a more predictive, affordable, and effective chronic care management system. "Today, it's not a question of if the industry will evolve, but how new players and incumbents will define their roles in the new consumer-centric health marketplace," Main said, adding that both are essential to the new borderless and collaborative multi-chain business design. "This is a once-in-a-generation transformational opportunity that is not possible without incumbent and innovator collaboration." The Marketplace Revolution report is the fourth in a series of reports about the changing healthcare landscape in the U.S. The Marketplace Revolution builds upon The Patient-to-Consumer Revolution report which focused on consumer centricity and the connection between health and lifestyle. The Volume-to-Value Revolution report focused on patient-centered care, consumer engagement, and the science of prevention and the Quiet Healthcare Revolution focused on the frail-elder market. About Oliver Wyman's Health & Life (News - Alert) Sciences Practice Oliver Wyman's Health & Life Sciences practice serves clients in the pharmaceutical, biotechnology, medical devices, provider, and payer sectors with strategic, operational, and organizational advice. Deep healthcare knowledge and capabilities allow the practice to deliver fact-based solutions. For the latest on the business of transforming healthcare, visit Oliver Wyman Health digital platform at health.oliverwyman.com. Oliver Wyman With offices in 50+ cities across 26 countries, Oliver Wyman is a global leader in management consulting that combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE: MMC]. Follow Oliver Wyman on Twitter (News - Alert) @OliverWyman.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160503006265/en/ |
