mHealth Israel_PwC Top Health Industry Issues of 2020

Mhealth Israel presentation
January 27, 2020
Top health industry issues
of 2020: Will digital start
to show an ROI?

PwC
Each December, right before the holidays, HRI names
the trends that will shape the US health industry in the
coming year.
The report, HRI’s flagship, is developed from input
from dozens of PwC partners and staff, interviews with
healthcare executives and other industry experts and
analysis of government and industry data.
The report also was informed by surveys conducted by
HRI of 3,500 American consumers and 500 executives
from providers, payers and pharmaceutical and life
sciences companies.
About this report
DateTop Health Industry Issues 2020: Will digital start to pay off
2PwC

PwC
This year’s top issues
3
Regulation trumps policy2
A looming tsunami of high prices1
4
6
Fast- forwarding from data to decisions7
Consumers inch closer to DIY healthcare3
5
US health organizations are seeking opportunities overseas and through innovation.
Beware of the tax risks.
Equity and inclusion, not just diversity, as a business imperative
A whole new you: Deals as makeovers

PwC
Heart of the matter: Will digital transformation benefit
customers?
In 2020, US healthcare, and especially how it is delivered and how much we pay for it, will be top of mind. As the industry
works to catch up to the rest of the digital economy, the key question will be whether the digital transformation will benefit
healthcare consumers and mark a new dawn for the US health industry and for the people whose lives depend on it.
Top Health Industry Issues 2020: Will digital start to pay off
4
How much will
consumer experience
change as receptionists
no longer hand them
clipboards of forms to
fill out?
Will physicians, now
aided by data-driven
insights, make better
diagnoses and write
better prescriptions?
Will the stream of new
drugs coming to market
swell thanks to faster,
more efficient clinical trials
and regulatory reviews?
Will insurers provide
consumers with choices
that are better for their
wallets and good for
their health?
Date

PwC
Digital upskilling is the top workforce priority for healthcare
organizations in 2020
Date
5
What will be your top workforce priority in 2020?

1. A looming tsunami of high prices
6
Date
PwC

PwC
Providers and plans have many financial options for consumers, yet
Americans are still frustrated
• Providers and plans have many
financial options for consumers, yet
Americans are still frustrated.
• Payers and providers will need to
take additional steps in 2020 to
make care more affordable for
patients
Date
7

2. Regulation trumps policy
8
PwC

PwC
The fate of four Trump administration priorities is at stake in the 2020
election
The election’s outcome will determine the fate of policies championed by the Trump administration that do not enjoy bipartisan support. The
administration has used its regulatory power to tweak the administration of the ACA, efforts that could be rolled back under a Democratic
president. This includes expanding sales of association health plans and short-term, limited duration insurance.
Date
9

PwC
Expect a slow 2020 when it comes to healthcare regulation
• Overall, 2020 likely will be a slow
year for action on healthcare out of
Washington, DC. An analysis of
regulatory activity shows a decline in
the 12 months before a presidential
election and a rebound in the 12
months after one.
• One of the important decisions a
president can make is the
appointment of leaders for key
agencies such as the FDA, HHS and
CMS.
Date
10

3. Consumers inch closer to DIY healthcare
11
PwC

PwC
Cybersecurity and privacy are seen as major barriers to digital strategies
• When it comes to making use of their
data, few companies are able to go it
alone. They may have limited
internal capabilities, lack data
science talent on staff, require
contract services to store or send
data, or rely almost entirely on
contractors to conduct research on
their behalf.
• These relationships help drive
efficiencies, but they also leave data
open to breaches.
Date
12

4. US health organizations are seeking opportunities
overseas and through innovation. Beware of the tax risks
13
PwC

PwC
Top companies from all health sectors are investing overseas and in
innovation
• US-based healthcare organizations
increasingly are hunting for new
ways to grow their healthcare
mission overseas and through
investments in novel technologies
and business models. But global
interests bring risks around tax, as
do activities related to innovation.
• Ninety percent of large health
organizations also are seeking
income in innovation, HRI’s analysis
found.
14

5. A whole new you: Deals as makeovers
15
PwC

PwC
Deal priorities differ among healthcare executives
• Forty percent of healthcare
executives surveyed by HRI said
their companies are somewhat or
very likely to acquire, partner or
collaborate across healthcare
sectors in 2020.
• They differed, however, on their top
deal priority: While providers valued
access to new technology, most
health plans valued the ability to
remain competitive in the market,
and pharmaceutical life sciences
executives valued gaining access to
new markets.
16

PwC
Healthcare organizations are considering new strategic identities that
require deals to match
• Companies identifying as Product
and Innovation Leaders will produce
the most advanced care and
scientific discoveries by acquiring the
best and brightest doctors, scientists
and researchers to preserve the
brand.
• Some health plans may pursue deals
that position them as Product and
Innovation Leaders in financing and
expanding access to high-cost care.
17

PwC
Consumers are not convinced that healthcare deals benefit them
• Consumers are not convinced that
healthcare deals benefit them.
• Segmenting consumers to
understand priority populations and
their unmet needs, such as the
social determinants affecting their
health, may help determine which
acquisition targets will bring the most
value to them.
18

6. Equity and inclusion, not just diversity,
as a business imperative
19
PwC

PwC
Some leading healthcare companies have taken action to promote
diversity in leadership
• Promoting leadership diversity
ranked last on the list of workforce
priorities; only 18 percent of
executives expressed it as a priority
for next year.
• The companies these executives
lead have developed mentorship or
leadership development programs
aimed at diversifying leadership; far
fewer have looked at the
demographics of their workforce in
comparison to the leadership team.
20

7. Fast-forwarding from data to decisions
21
PwC

PwC
Here’s how health companies can get to insights faster
• In 2020 and beyond, all health
companies will need to get to
insights faster. They’ll need to
develop an engine, a platform, that
can synthesize data, generate
insights and turn those insights into
decisions in rapid form. Here is the
chassis that engine should run on .
22

© 2019 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers
International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as
agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its
member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of
any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way.
Thank you
pwc.com/us/healthindustries
pwc.com/hri
To download the full report, please visit: www.pwc.com/TopHealthIssues
Benjamin Isgur
Managing Director
PwC Health Research Institute Leader
benjamin.Isgur@pwc.com
follow me on Twitter @bisgur
Top health industry issues of 2020: Will digital start to pay off?

mHealth Israel_PwC Top Health Industry Issues of 2020

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