Delivering value in the New Health Economy
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1 Delivering value in the New Health Economy New York Health Plan Association November 16, 2017
2 Healthcare is undergoing a transformation from a closed and highly-siloed industry into a plug-and-play ecosystem of modules serving the consumer The traditional health industry The New Health Economy integrated ecosystem Patient / Consumer Government Pharma & Life Sciences Provider Payer/ PBM Employer Retail / Pharmacy Five transformative forces Volume to value Digitalization Wellness Decentralization Consumerism Source: HRI s Surviving seismic change: Winning a piece of the $5 trillion US health ecosystem 2
3 Some healthcare providers say current regulatory uncertainty is prompting them to adjust their value-based strategies How has current regulatory uncertainty impacted your organization s implementation of value-based care strategies? 35% 31% 34% Slowed Accelerated No Impact Source: PwC Health Research Institute provider executive survey
4 And pharmaceutical executives aren t convinced the benefits of value-based contracts for prescription drugs exceed their risks The potential rewards of a successful value-based contract are commensurate with or exceed the risks. Source: PwC Health Research Institute pharmaceutical executive survey
5 However, health insurers still believe the shift to value-based care is going to have the greatest impact on how they do business in the years ahead Percentage of health insurer executives who believe each of the following forces is going to have the greatest impact on the way they do business in the next five years Employers aren t convinced that all the best solutions are coming from insurers and increasingly are looking outside for innovators that are challenging the status quo. Mike Thompson, CEO of the National Alliance of Healthcare Purchaser Coalitions Source: PwC Health Research Institute health insurer executive survey,
6 And that regardless of the new administration and future efforts to reform healthcare, the shift to value-based care and rise of consumerism show no signs of abating Percentage of health insurance executives who said... 74% 69% 69% The shift to value-based reimbursement will either accelerate or not be impacted by the new administration. The consumerization of healthcare will accelerate in the coming years. Providers and consumers taking on more risk will continue to accelerate. Source: PwC Health Research Institute health insurer executive survey,
7 To deliver more value, health insurers know they will need to increase collaboration with providers and better engage consumers Source: PwC Health Research Institute health insurer executive survey,
8 Health insurers who thrive in the future will support providers through data analytics platforms, improve care coordination and invest in non-clinicians HRI s five models of the health insurer of the future Source: PwC Health Research Institute analysis 8
9 What it means for business Partner where it makes sense Payers will need to partner with providers, new entrants like retail clinics and telehealth companies, and community health organizations such as such as schools, churches and community centers, to expand their footprint, develop new service offerings, diversify their workforces and improve care delivery. 1 Explore new roles Consumers and clinicians alike are supportive of the use of nonphysician practitioners. Organizations that use all caregivers at the top of their training and in the most appropriate care settings will likely surpass others with regard to access, affordability, quality and consumer satisfaction. 2 Use data and analytics to design, deploy and deliver Deploy technology to stratify consumers and discover where costsavings opportunities lie. Determine the mix of services and staffing approaches to meet each consumer s unique needs and preferences. 3 Help providers focus on delivering care By supporting and automating processes like patient eligibility and prior authorization when possible, health insurers can relieve some of providers administrative burdens, freeing them up to focus on delivering care.. 4 9
10 Questions? Thank you! James McNeil Principal, US Health Industries Where can I find out more? pwc.com/us/healthindustries twitter.com/pwchealth Recent HRI Publications Launching into value: Pharma s quest to align drug prices with outcomes Medical cost trend: Behind the numbers 2018 The health insurer of the future: Consumers advocate, providers partner Top health industry issues of 2017 Surviving seismic change: Winning a piece of the $5 trillion US health ecosystem 2017 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
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