Editor’s Notice: Within the fall of 2022, GreenBook’s IIEX Well being occasion occurred in Philadelphia, bringing each helpful and inspiration content material to insights and analytics professionals spanning the healthcare, pharmaceutical, medical, and wellness industries. Attendees discovered the content material so worthwhile that we wished to make a lot of it out there to all who couldn’t attend this in-person occasion. Earlier than even studying this publish, know this: You may view all of the classes on-demand now!

When you aren’t in these industries … how may you apply the training inside your personal? At GreenBook, we consider that IIEX is greater than a convention sequence. It’s a mindset. These are the boards wherein an important insights improvements are revealed, demonstrated, debated, and championed. What begins on the occasions drive change in our world. It’s in that spirit that we carry you, immediately, a few of the poignant content material we heard at IIEX Well being.

Lastly … enroll right here to obtain updates on IIEX Well being 2023!

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Take pleasure in our On-Demand Video

Be part of New York College Professor Steve Andrzejewski with a chat in regards to the altering panorama within the healthcare business. Discover the consistently evolving business and the way pharmaceutical firms can take part on this altering panorama. Click on to view the video (courtesy of Civicom).

 

View extra 2022 IIEX Well being content material on-demand!

Whether or not you had been in a position to attend, or you weren’t, be a part of us on-line to see what was shared by a few of the greatest manufacturers, the latest startups, and expert-level researchers throughout healthcare, pharma, and client expertise. Right here’s simply two of the wonderful classes you’ll discover on-demand:

• Greg Hewitt and James Bauler communicate to the innovation course of behind Fuse Oncology, a spin-out of Cone Well being, after a important examination of the lag between a affected person’s prognosis and begin of therapy.
• Zach Hebert speaks to how the Covid-19 pandemic has made it extra essential than ever to ship the appropriate message and the way the appropriate message might help ease the thoughts of vaccine hesitant mother and father.

On-line you’ll discover different improbable classes by audio system from Pierre Fabre Group, Novartis, Hinge Well being, and extra! If you wish to keep on high of the tendencies within the healthcare business — one of many largest spends in market analysis — you gained’t wish to miss IIEX Well being On-Demand!

Not conversant in the Perception Innovation Change (IIEX)?

Ten years in the past, GreenBook launched into a easy concept: Might we create alternatives for market analysis leaders to share concepts and collaborate to outline the way forward for insights?

If there was one thing new to our business — an organization, methodology, or platform — that didn’t exist 10 years in the past and is now thought of a “greatest apply” … nicely, you in all probability noticed it first at an IIEX occasion.

What begins right here will change our world!

Transcript

(Transcript courtesy of TranscriptWing)

Alexine Tranquada: All proper. For our final presentation for the day, we’re so lucky to have Prof. Steve Andrzejewski with us to speak in regards to the altering panorama in healthcare. As we all know, issues are evolving so rapidly, and the way can pharma take part on this altering panorama. So thanks very a lot, Professor. 

Steve: Thanks very a lot. Good afternoon, everybody. Oh, return one. There we go,  “The Altering Panorama of Healthcare,” There’s loads occurring, and on the finish we’ll discuss how pharmaceutical firms will work together with that altering healthcare panorama.  

Simply actually rapidly on myself, I went to Hamilton Faculty and performed ice hockey.  You’ll perceive why I’m telling you that on the finish of the presentation. Then I went to NYU Stern a few years in the past. I’ve been an adjunct professor there. I train a course known as the Enterprise of Well being and Medical Care to the Economics Division. I spent my whole profession within the pharma/biotech market. Healthcare represents, as you in all probability know, 20% of the gross home product. One of many issues I inform my college students proper upfront is it’s clearly very difficult, however within the six-week course, one evening per week, so there’s not numerous time to cowl  numerous floor. Listed here are a few of the issues which have both arrived or rising  that it’s best to bear in mind. As you go into the course, take into consideration this stuff.  

The primary one, it shouldn’t be a shock, “Comply with the greenback and reveal worth.” It’s not solely prescribed drugs. A lot of you, I’m positive, are taking a look at digital well being and all of the exercise that’s occurring there. We all know there was some huge cash  that went into the digital well being popping out of the pandemic. It was a development that  was accelerated. Nonetheless, the final six months or so, clearly, broader financial  points, there’s numerous the digital well being investments gone means down. When you learn  about it, one of many issues they need to do is that they need to reveal worth,  proper? All people does. If the digital platform sounds actually good, in the event that they’re not bettering the present scenario, it’s going to be difficult.  

Consolidation. We’ve clearly seen that through the years with drug change, distributors. We see CVS and Aetna, and Cigna and CSI coming collectively. One of many issues when consolidation happens in any business, you see the value factors begin to go up. We’ve clearly seen that in healthcare typically and, clearly with, extra not too long ago, inflation. Schooling. Clearly, the web over the past 10-plus years has been an enormous assist because it pertains to training. Individuals can get data at their fingertips way more rapidly than they used to. Clearly, we get bombarded with issues like eating regimen and train, eating regimen and train, eating regimen and train, however there’s much more that goes past that and different important element to healthcare. 

We simply heard somewhat bit about consumer-driven healthcare and affected person duty. All people has a task within the general system. One of many issues that I gained’t cowl immediately however that we discuss in my class is we examine the US system to different international locations and the way they deal with healthcare. In socialized techniques, the whole lot is roofed, however there are professionals and cons to that, proper? In Canada, you might have to attend six months to get an MRI. There may be this idea of affected person duty within the system. I’m not fairly positive all people in the US thinks that means, but it surely’s essential and we’ll see extra of that particularly as extra of the cash, increasingly sufferers or persons are given the selection to do excessive deductible well being plans nowadays the place you’re not paying as a lot by way of the premium popping out of your month-to-month wage, however then you’ve gotten a much bigger chunk of cash to undergo your out-of-pocket bills earlier than your insurance coverage actually kicks  

1.A part of that’s the customers have extra management over the place they’re going to make use of these {dollars}. Then, clearly, you’ve gotten well being spending accounts and versatile spending accounts. I got here up with the phrase electronization of healthcare. It’s not all that straightforward to  pronounce. Nonetheless, digital medical data, everyone knows, have performed a a lot larger position in drugs. It’s not that way back that we had the manila folders, proper? Ten-plus years in the past, while you stroll in a health care provider’s workplace, manila folders in all places. The Obama Administration gave incentives for docs to modify to EMRs. When you talked to any docs, as I’m positive you’ve gotten, they’ll complain to this day how painful that was. I believe it’s a greater downside, EMR, than all of the manila folders as a result of I believe there’s a greater likelihood of measuring affect in healthcare.  

Clearly, past EMR, we have now numerous digital well being alternatives and locations on the web and different methods wherein it’s impacting healthcare. Ethics is all the time essential because it pertains to healthcare and making selections simply to what will be reimbursed or not. There are all the time tradeoff selections. Not the whole lot goes to be paid. Then an enormous bucket on the backside there, and I’m going to speak much more about that is new healthcare fashions. Massive organizations like Amazon, Berkshire  

Hathaway, and JP Morgan, I believe you in all probability know, got here collectively beneath Haven. Three main organizations in our nation, and what occurred? It’s disbanded. It’s one other indication of how difficult healthcare is and the incentives should not all the time aligned throughout the system. Normal Motors with Henry Ford Healthcare System labored somewhat bit higher. We simply had the election about a few days in the past, and other people say politics are all native, proper? The identical factor to an extent with healthcare, it is a good instance of it. It might be somewhat bit simpler to ship healthcare as a result of it’s extra regional. 

Denmark is all the time excessive on the record by way of how a lot cash they spent in healthcare and what outcomes they ship. Nicely, it’s a smaller, extra homogeneous group of individuals than we have now by far than the US. So one other instance that regionalization does make a distinction. Hospitals began their very own generic drug firms, Civica Rx. That’s been very profitable. Quite a lot of hospitals felt they had been paying an excessive amount of cash. So how do you get extra leverage within the market? It applies in healthcare as nicely. You get extra quantity and negotiate on value. It’s primarily what they did by creating their very own drug firm. A number of of the others I’m going to get in right here, concerned right here as we transfer ahead. 

So I’m going to go over various offers that occurred within the final couple of years within the healthcare area and attempt to provide you with somewhat sense as to why they doubtlessly are doing this, however it is going to result in the top of, “Okay. How does pharma slot in to all of this stuff which are occurring in healthcare?” So, $13.5 billion UnitedHealthcare and Change Healthcare, UnitedHealthcare wished entry to Change Healthcare’s analytics and fee platforms and Change clearly is a part of Optum. Clearly information, AI alternatives exist. FTC challenged this on a few of that foundation, but it surely has since handed. This occurred a couple of yr in the past. 

Oracle and Cerner. Oracle will get entry to a trove of healthcare data from Cerner. They didn’t have entry to that earlier than, $28.3 billion. Clearly, they see an alternative right here to repair a few of the inefficiencies in our system. Once more, that was from December of final yr. Amazon. They’ve been quoted as saying, “Healthcare is excessive on the record of experiences that want reinvention.” I don’t assume that ought to come as a shock to anyone on this room. On the similar time, we all know Amazon has been fairly good at reinventing issues, perhaps not so nice in healthcare. They put a bunch of effort ahead. They haven’t all essentially labored out. For them, the $3.9 billion is in all probability small within the large scheme of issues. They purchased One Medical. Clearly, that gives buyer 24/7 entry to digital care. That occurred in July of this yr.  

Earlier this week, you’ll have seen that Walgreens, specifically, their VillageMD group, purchased Summit Well being. For these of you who don’t know, Summit Well being is Summit Medical Group, which is an built-in supply community mainly within the New Jersey space and in addition CityMD. That, I believe, was round $9 billion as introduced earlier. So, issues proceed to alter, and all these totally different organizations are taking a look at the place can they doubtlessly add worth and get a aggressive benefit. Google. One other large identify in enterprise, proper? They wish to play in healthcare, too. $2.1 billion, that’s not that large of an funding for Google, however they’re investing in Fitbit. Can they make healthcare extra accessible? Clearly, Fitbit is a wearable. You hear much more about wearables. Can they acquire the appropriate data that’s going to have an effect transferring ahead? That was introduced in late ’19 however closed in early ’21. 

You in all probability clearly have heard of 23andMe, they usually went forward and purchased Lemonaid for $400 million. They wish to make personalised healthcare a actuality. Clearly, it’s genetics area for 23andMe. As a substitute of constructing a digital platform, they went out and purchased one in Lemonaid. There’s a telemedicine element of that. We’re speaking about that earlier immediately. That was October of final yr.  This one doubtlessly is likely one of the large granddaddies of all of them, $18.5 billion {dollars}. Teladoc purchased Livongo, and Livongo is concentrated in diabetes. When you’re a pharmaceutical firm, to me, you’d wish to actually be actually learning the way you match into the diabetes equation given the place this entire effort could also be going. You could know that Glen Tullman was the CEO of Livongo. He began Transcarent the place he’s making an attempt to coordinate pharmacy care to have one-stop buying, particularly in diabetes. Individuals get their insulin from one place. They get their different drug from someplace else. A whole lot of this has to do with bettering the shopper journey, and that will trump the standard of a drug. If somebody goes on-line they usually’re having fun with and are in a position to get by way of what’s perceived and the difficulties of pink tape in healthcare proper now and might get to a degree the place they’ll get care and a drug that makes a distinction, they might simply be going with the generic drug. It doesn’t matter that there’s a brand new drug within the market that’s considerably higher in a way, form, or type. 

Lately, USA At present did a survey; 68% of individuals need know-how to play a much bigger position in sharing real-time medical data with their doctor. Fifty-six p.c of individuals surveyed used a digital assortment device to observe well being. I believe numerous us in all probability monitor our steps on our iPhones. Clearly, it’s going means past that transferring ahead, once more, one other indication that buyers are going to regulate extra of their healthcare transferring ahead. Psych Hub is only one instance of many digital well being platforms which are on the market. They not too long ago raised a good quantity of cash. They’ve over 800 companions together with J&J. It’s an academic useful resource for psychological well being, and it connects you to a health care provider for a seek the advice of. To me, if you happen to’re a pharmaceutical firm in psychological well being, I’d attempt to actually perceive what’s going on in Psych Hub and lots of, many different psychological well being platforms which are on the market. 

Healthcare is altering drastically. You shouldn’t be shocked by something that you simply see up there. It’s catching as much as the remainder of the world from a digital perspective, healthcare, however clearly with the pandemic, the tempo of change has accelerated. We talked about information and the way the simulation of that from an AI standpoint may actually have an effect. Clearly, the extra know-how advances are bettering issues extra rapidly however will complicate issues from a reimbursement standpoint as nicely.  

Rapidly, traditionally, while you have a look at the healthcare mannequin, it was vertical: physician, affected person, pharmacy hospital. It moved to a extra distributed healthcare throughout various totally different sectors, some which are famous right here: imaging, behavioral well being, rehab. Now, it’s actually transferring to a extra linked mannequin. Integration, I discussed built-in supply networks earlier. Built-in supply networks are  growing their affect within the market. In my experiences in pharmaceutical roles, they’re very tough to kind of penetrate and get to the appropriate decision-makers because it pertains to what their efforts are so one thing to bear in mind.  

A very essential half is extra proactive than reactive, proper? As a substitute of treating sick care, how will we get forward of the sport and deal with sufferers from a well-care perspective to extend worth. I discussed know-how earlier. We all know wearables, digital well being. All of the issues that you simply see up there, genomics, robots, 3D-printing are all proceed to advance know-how. It’s the same query of how do they slot in?  

Just like a pharmaceutical, how do they slot in to the system, and the place are they going to have the ability to add worth and have a aggressive benefit? One factor that I assume is essential to level out. You hear the phrase digital well being time and again and over once more. Is it actually digital well being or is it simply well being, proper? I imply, will we name it like digital looking? Can we name it digital expense monitoring on-line? No. We simply name it what it’s. So, it’s indicative that healthcare is behind the remainder of the world because it pertains to the digital platform and ultimately, I believe it’s merely going to be known as well being.  

While you have a look at prescribed drugs, while you look traditionally, everyone knows considered one of the primary thresholds for fulfillment is you need to reveal efficacy and security. Clearly, in more moderen instances, demonstrating worth from an financial standpoint or nonetheless you wished to search out that, particularly with payers and managed care organizations, to get reimbursement is important. I’m going so as to add now one other threshold: is how do you are taking each of these and the place do you play in that healthcare area given all of the tendencies and modifications which are taking place? 

This slide is right here as a result of, in my expertise, the pharmaceutical business tends to transfer very slowly. I believe you’ve seen that even from a digital well being standpoint, a contributing issue to why it’s nonetheless perhaps known as digital well being as an alternative of well being versus different industries. It’ll be attention-grabbing to see how issues change over time, however I actually assume the pharma business has to determine the place do they wish to play. That is the place the hockey analogy is available in, and why I discussed that I performed hockey in school a very long time in the past. How will pharma slot in? One piece of recommendation from the well-known hockey participant, Wayne Gretzky, “I skate to the place the puck goes to be not the place it has been.” I believe that’s a very good piece of recommendation for the pharma business to be fascinated about on this fast altering panorama of healthcare. Thanks very a lot. You probably have any questions, comfortable to take them. [Applause] 

Alexine Tranquada: It’s so cool. Sure. Now we have a query within the again?  

Feminine 2: Might you give your ideas on how blockchain and EAOs will match into this enterprise  that you’ve? 

Steve: Nicely, I imply, I believe it’s one other type of know-how that’s going to hurry issues  up, however as issues get sped up, you bought to search out the place that puck goes as opposed to the place it’s been. There are such a lot of issues altering so quickly. While you have a look at the pharma and biotech business, Boston, what number of biotech firms are there? A few of them are perhaps very nicely utilizing blockchain of their efforts, however simply attending to that Section 3 trial after which approval is just not going to find out success on its personal, clearly. If there’s unmet wants, nice, but it surely’s going to go away past that. I simply see it as one other type of know-how that speeds issues up.  

Feminine 2: Can I simply elaborate? 

Steve: Sure. Please do.  

Feminine 2: Do you assume that pharma will find yourself adopting blockchain, or do you are feeling prefer it’s  going to be an business that’s going to finish up being very resistant on this specific case prefer it has with the whole lot else? Or do you see that there’s going to be a development that you simply gravitate in direction of this decentralized, democratized information?  

Steve: What Jonathan, I believe, mentioned in his presentation earlier was one thing alongside the  traces of change occurs, and perhaps it’s sluggish at first then impulsively it takes off. Pharma is, I believe traditionally, glacial change, they usually’re in all probability in that boat because it pertains to blockchain. Perhaps you’re doing extra at Novartis and perhaps there’s extra exercise there. I believe all of this turns into a aggressive benefit, and I believe in some circumstances, particularly if you happen to’re a smaller firm that doesn’t have the sources to determine numerous this stuff, they might be left behind transferring  ahead. While you say blockchain, is it going to be some small to midsized pharma firm that will get concerned in blockchain to assist them? Unlikely. It’s going to be the massive pharma that has the sources to try to determine that out and perceive the place issues are heading and the way they match into it.  

Feminine 2: It’s okay.

Steve: Certain. Thanks for the query. Sure? 

Male 1: You introduced up numerous the acquisitions that occurred not too long ago. Do you assume that  that’s a part of a better development of issues changing into increasingly centralized within the healthcare business, like in a couple of years it’s going to be large tech firms which are simply working your e-mail account and your healthcare and that sort of factor? Or do you assume that there may be has a small [Unintelligible] entry and small [Unintelligible] would there be an inflow of extra aggressive – being that progressive and coming into that [Unintelligible] alternative the place it’s going to be very centralized?  

Steve: Sure. I believe it’s too advanced and there are too many alternatives within the area for  it to turn into ultra-centralized. I believe there’ll all the time be a need of competitors to maintain that market forces going. So FTC seems to be in any respect these offers, they usually’re not solely taking a look at them. They’re trying on the one which I discussed earlier with Amazon. They’re not solely taking a look at it from a standpoint of healthcare. As a result of One Medical doesn’t characterize that many sufferers within the large scheme of issues, however they’re trying from information as nicely and the way a lot information does anyone have entry 

1. I do assume although these individuals which are forward of the sport in information and are studying from it are going to have the ability to make selections which are going to place them for higher progress than perhaps firms have accomplished. Sure?

Feminine 3: I want to return to the opposite query. Close to Amazon and their  buy of One Medical, earlier than they did the acquisition, they’d a special measure of the place they sort of utilized their Amazon-y sort of method to the whole lot that they do. “We’re going to repair healthcare,” they usually regularly did numerous stuff that ended up failing as a result of they didn’t have the reference to healthcare suppliers, with sufferers. They didn’t actually perceive the complexity of the connection which led to the primary group of [Unintelligible]. On condition that and provided that Amazon has been so profitable from the areas [Unintelligible] surprising failure, if Amazon can’t do it, if they’ll’t are available and actually innovate within the area, what hope does anyone else have? In the event that they’re not doing good there, what’s one factor that anyone can do to really make enhancements, or is it actually all the time going to be inner the place the alliance now’s pharma firms working, the hospital and payers, and it needs to be a [Unintelligible] working altogether to make the change internally. Or can anyone exterior are available and try this? 

Steve: Nicely, a few issues. Amazon, clearly, has some huge cash make investments and healthcare is clearly a part of their technique just by 20% of GDPs in healthcare. I assume they’re going to maintain making an attempt. They’re in all probability getting nearer now that they have a supplier element, however they’re not going to cease, proper? They’re going to maintain making an attempt to determine it out. With that mentioned, I don’t assume they’re going to be like found out so nicely that they turn into healthcare, proper? I imply, it’s simply there are too many elements to it. It will be nice for a few of the techniques. I believe IDNs are a part of that to perhaps accomplice with a few of these organizations. I believe numerous persons are afraid of Amazon, too, although, proper? I imply, they assume that they’re so robust that they’re going to determine one thing that anyone else couldn’t, after which that group could be at a aggressive drawback. I inform my college students after I train this class is, “You’re getting your MBA. You wish to get entangled in enterprise. What an ideal place to go in healthcare.” It’s actually difficult. It’s fragmented and it’s inefficient. What does that spell? Alternative, proper? Heaps and plenty of alternative. When you go backwards 10 years, we’ve discovered loads, and have a look at how far we’ve come even by way of ordering issues on-line and them having shipped – medication on-line after a seek the advice of with a health care provider had been vital and having it shipped to our home. The data that we study on-line, oh my gosh. “My aunt has most cancers. Okay. Let’s instantly go surfing.” You simply take into consideration how far even from 10, 15 years in the past the place we at the moment are. We’ve made numerous progress. Nonetheless numerous inefficiencies and there are numerous causes for that. Personally, I believe there’s discrimination in healthcare. I believe there are clearly all the time entry points in healthcare. We’re way more difficult. Our society is predicated on freedom and capitalism, and others aren’t all the time in that scenario. We’re not a homogeneous inhabitants. We’re treating numerous different ailments, and we’re all the time trying to get one of the best know-how, not less than, a element of {the marketplace}. I believe it spells alternative even that I’m kind of in my speak right here difficult the pharma business, “Okay. How are you going to slot in?”  

Even like one large, large pharma firm is just not going to go in and alter the world, however the place do they slot in? The place is your spot in transferring ahead foundation the place you’re going to search out success and aggressive benefit? Thanks very a lot.  

Alexine Tranquada: Thanks a lot. [Applause] Actually, I’m so grateful. That’s our program for the  day. I hope you all loved it. I hope you all are taking dwelling one thing that’s actionable or inspiring or just insightful. We shall be downstairs for the foreseeable future, so we are going to see you down there. Once more, thanks all. On behalf  of Greenbook and all people on IIEX occasion staff thanks a lot for being right here. [Applause] Oh and thanks to Lexi for being my trusted co-chair on this observe. It’s nice. Thanks. Good. [Applause]