Our thought leadership

The following articles were written by Strategy& partners and other senior professionals on key topics in the health sector.

Please choose a category to read a selection of articles.

Payor
There’s a new boss in U.S. healthcare: the consumer. That’s the key finding in an extensive survey of 2,339 U.S. residents by Strategy&. The research paints a clear picture of a population displeased with its overall healthcare experience — and with rising expectations for transparency, value, and customer service, as well as a willingness to seek healthcare services from less traditional sources. The healthcare market as we know it is being upended, and the consumer is in the driver’s seat.

 

Now that private exchanges are entering the market, the large employers that most exchanges are targeting may not be the most attractive. Instead, payors need to design strategies that consider the value to individual employer segments and factor in new players, new ways to play, and new risks.

 

In the post-reform era, payors must formulate strategies and invest in new capabilities to grow. To win in this environment, payors should consider a Fit for Growth regime that fuels strategic growth, nurtures essential capabilities, and ensures cost competitiveness.

 

Putting an I in Healthcare
The days of the disengaged health consumer are numbered. Consumerization will transform healthcare systems, involving individuals as never before in the management of their own care.

 

Bundled Care: The Opportunities and Challenges for Providers
Bundled care is one approach to extending health care to all Americans at affordable prices with no sacrifice in quality. This is the second in a series of Strategy& articles on bundled care. The first dealt with consumer perceptions of bundles, and this Perspective presents survey data from providers: physicians and hospitals.

 

download
The goal of extending healthcare to all Americans at affordable prices and with no sacrifice in quality, will require huge changes. One model that has already gained traction is bundled care, a complete package of care, financing, and support for a specific condition that breaks with the de facto medical model of fee-for- service (billing for each activity separately). In a bundle, a single fee covers everything related to a condition or procedure in an end-to-end construct that has the potential to vastly improve the consumer’s experience. As the results of a recent Strategy& survey demonstrate, U.S. consumers appear ready for the advent of health bundles.

 

New competitors in the health industry may soon be able to offer plans with cost as much as 80 percent lower than those of a typical plan today. If incumbent operators are to defend their market share from these upstart competitors, they must go far beyond their current, incremental approach to reducing costs. In fact, they must fundamentally rethink their business model.

 

The Supreme Court’s decision to uphold the Affordable Care Act (ACA) means that the transformational changes already underway in the healthcare system will accelerate in three key areas: expanded access for individuals via health insurance exchanges and expanded Medicaid eligibility, where states consent; greater integration of care, and more affordable care. To keep up, health insurers, care providers, pharmaceutical firms and other healthcare companies need to take action.

 

Health insurance in the U.S. is at the cusp of a major transition from an employer-driven payor model to a model directly involving many more employees and consumers. Private health insurance exchanges with a defined contribution approach represent a significant step toward catalyzing this change. In this paper — part of an ongoing series of Strategy& perspectives on the shift to consumerism in health insurance — we consider the impact of this change on the payor industry and the strategic approach that leading companies need to take.

 

This perspective describes Strategy&’s approach to change management and lays out the five key success steps in any successful change management program.

 

Health Insurance Gets Personal
As reform legislation makes the U.S. healthcare industry more consumer-centric, companies will need to change their business models and add new capabilities.

 

Health systems and other providers
Virtual health
As markets shift toward risk-based reimbursement models and drive increased retail behavior by consumers, health systems will need to embrace virtual health. Successful virtual health strategies will help them achieve four important business objectives: better outcomes, improved access and patient experience, reduced costs, and revenue growth.

 

There’s a new boss in U.S. healthcare: the consumer. That’s the key finding in an extensive survey of 2,339 U.S. residents by Strategy&. The research paints a clear picture of a population displeased with its overall healthcare experience — and with rising expectations for transparency, value, and customer service, as well as a willingness to seek healthcare services from less traditional sources. The healthcare market as we know it is being upended, and the consumer is in the driver’s seat.

 

Bundled Care: The Opportunities and Challenges for Providers
Bundled care is one approach to extending health care to all Americans at affordable prices with no sacrifice in quality. This is the second in a series of Strategy& articles on bundled care. The first dealt with consumer perceptions of bundles, and this Perspective presents survey data from providers: physicians and hospitals.

 

Many hospitals and healthcare systems are not prepared for the way their function and forms will change in the next few years. They appear to be stuck, as if waiting for competitors, regulators, and payors to tell them how to define themselves. With a capabilities-driven strategy that broadens their thinking about form and function, hospitals and health systems can untether themselves from the past, unlock new opportunities, and remain viable and vital during these tumultuous times.

 

The Supreme Court’s decision to uphold the Affordable Care Act (ACA) means that the transformational changes already underway in the healthcare system will accelerate in three key areas: expanded access for individuals via health insurance exchanges and expanded Medicaid eligibility, where states consent; greater integration of care, and more affordable care. To keep up, health insurers, care providers, pharmaceutical firms and other healthcare companies need to take action.

 

This perspective describes Strategy&’s approach to change management and lays out the five key success steps in any successful change management program.

 

A Better Model for Health Care
An innovative experiment in Florida shows the potential for more systemic collaboration as the catalyst for lower costs and improved quality.

 

Life sciences
How to win at animal health
Animal health businesses can thrive within human pharma organizations. But only if their leadership is permitted to tailor their businesses to the unique demands of the animal health market.

 

In the post-reform healthcare environment, pharmaceutical companies have a clear opportunity to play a greater role in delivering a better experience for patients, improving clinical outcomes, and reducing the total cost of care. The key is digital health technology.

 

Putting an I in Healthcare
The days of the disengaged health consumer are numbered. Consumerization will transform healthcare systems, involving individuals as never before in the management of their own care.

 

Medtech companies must take the right strategic approach to managing costs while investing in capabilities and growth initiatives, via a Fit for Growth transformation. This entails three specific priorities: (1) investing in differentiating capabilities and growth initiatives; (2) transforming the cost structure; and (3) reorganizing for sustainability.

 

To better understand both the challenges faced by the global pharmaceutical industry in its pursuit of emerging-market opportunities and the strategies that leaders are employing to address them, Strategy& surveyed executives from more than 25 of the top pharmaceutical and generics companies, other industry experts, and members of Strategy&’s global pharmaceutical practice. The results paint a compelling picture of the hurdles and opportunities Pharma faces in pursuing perhaps its best opportunity for growth.

 

Medical Device Quality
In our experience, there are three root causes for the rising incidence of product failures in the medical device industry: a siloed, reactive approach to quality; a lack of focus on continuous improvement; and the ever-increasing complexity of medical devices. To address them, manufacturers should consider developing quality management as an organizational capability. The principal components of such a capability are critical-to-quality (CTQ) management, systems engineering, and design for Six Sigma (DFSS). Companies that successfully weave these three elements into an integrated, preventive quality capability can achieve a competitive advantage and a leadership position in their industry.

 

Creating Value In Pharma-Health Plan Collaborations
A wave of research-based collaborations between pharmaceutical companies and payors is enabling a new level of credibility, trust, and joint efforts to enhance patient care.

 

A Strategist’s Guide to Personalized Medicine
Breakthroughs in pharmaceutical innovation are poised to change the prevailing business model of the industry — with dramatic effects on healthcare costs and practice.

 

Pharma Strategies for Optimizing Returns on In-line Products
As pharma products experience intensifying margin pressure, every prescription counts. More successful pharmaceutical companies are adopting analytical techniques to identify and capture precious points of profitable market share.

 

Big Pharma’s Uncertain Future
The business model that drove the major drugmakers’ success isn’t working anymore. The survivors will be those that make smart strategic bets supported by winning capabilities.

 

Five Steps toward a Revitalized Pharmaceutical Supply Chain
Global drug companies are facing disruption. One powerful strategic response is to rethink their manufacturing and operations footprints.

 

In the current economic environment, there is increasing interest in the concept of "zero-basing" cost and activity levels. Although the concept of zero-basing is understood in theory, it is often misapplied. A structured and pragmatic approach to zero-basing can help achieve sustainable cost reduction while protecting key activities.

 

This perspective describes Strategy&’s approach to change management and lays out the five key success steps in any successful change management program.

 

Which Innovation Efforts Will Pay?
Many companies struggle to boost the returns they achieve on their R&D projects. Strategy& partner Alexander Kandybin discusses the benefits and the limits of the Return on Innovation Investment (ROI2) methodology in this article from the MIT Sloan Management Review.

 

Managing talent well creates value for companies — that’s the bottom line. To remain competitive, particularly in difficult times, they must not only cut costs; they must also seize future advantage by revamping their talent management strategies and developing more innovative value propositions, in line with the changing demographics of a more mobile, diverse, and global workforce. This perspective shows how to maximize the impact on business results by applying a comprehensive approach with four components: differentiated capabilities, performance acceleration, leadership development, and a talent culture.

 

Public health
Bundled Care: The Opportunities and Challenges for Providers
Bundled care is one approach to extending health care to all Americans at affordable prices with no sacrifice in quality. This is the second in a series of Strategy& articles on bundled care. The first dealt with consumer perceptions of bundles, and this Perspective presents survey data from providers: physicians and hospitals.

 

Gulf Cooperation Council (GCC) countries can use public-private partnerships as a means of managing rising healthcare costs, as a mechanism to enhance the capabilities of the healthcare system, and as part of a program of systemic transformation of the sector.

 

Despite the Supreme Court’s recent decision to allow individual states to opt out of the Medicaid expansion provision of the Affordable Care Act, Medicaid rolls will soon expand by millions of people. Indeed, this decision is just one element of the changing Medicaid landscape. Many states will continue to shift their current Medicaid and “Duals” populations—those who qualify for both Medicare and Medicaid—to managed care organizations (MCOs), creating enormous opportunities and challenges. For MCOs that decide to take the plunge, we propose a multistep approach.

 

This perspective describes Strategy&’s approach to change management and lays out the five key success steps in any successful change management program.

 

Health NGOs and advocacy organizations
Bundled Care: The Opportunities and Challenges for Providers
Bundled care is one approach to extending health care to all Americans at affordable prices with no sacrifice in quality. This is the second in a series of Strategy& articles on bundled care. The first dealt with consumer perceptions of bundles, and this Perspective presents survey data from providers: physicians and hospitals.

 

Gulf Cooperation Council (GCC) countries can use public-private partnerships as a means of managing rising healthcare costs, as a mechanism to enhance the capabilities of the healthcare system, and as part of a program of systemic transformation of the sector.

 

This perspective describes Strategy&’s approach to change management and lays out the five key success steps in any successful change management program.

 

Consumerization
There’s a new boss in U.S. healthcare: the consumer. That’s the key finding in an extensive survey of 2,339 U.S. residents by Strategy&. The research paints a clear picture of a population displeased with its overall healthcare experience — and with rising expectations for transparency, value, and customer service, as well as a willingness to seek healthcare services from less traditional sources. The healthcare market as we know it is being upended, and the consumer is in the driver’s seat.

 

Putting an I in Healthcare
The days of the disengaged health consumer are numbered. Consumerization will transform healthcare systems, involving individuals as never before in the management of their own care.

 

Bundled Care: The Opportunities and Challenges for Providers
Bundled care is one approach to extending health care to all Americans at affordable prices with no sacrifice in quality. This is the second in a series of Strategy& articles on bundled care. The first dealt with consumer perceptions of bundles, and this Perspective presents survey data from providers: physicians and hospitals.

 

The Supreme Court’s decision to uphold the Affordable Care Act (ACA) means that the transformational changes already underway in the healthcare system will accelerate in three key areas: expanded access for individuals via health insurance exchanges and expanded Medicaid eligibility, where states consent; greater integration of care, and more affordable care. To keep up, health insurers, care providers, pharmaceutical firms and other healthcare companies need to take action.

 

As the pressures created by healthcare reform, consumer demands, and rising competition squeeze margins, health plans should consider a low-cost strategy (LCS). To adopt such a strategy, plans have two major decisions: choosing an operating model, and determining the capabilities sets that will enable them to leverage the LCS value chain and differentiate themselves in the marketplace. Those plans that choose wisely can expect sustainable margins averaging 5.5 percent and operating model cost structures that are 20 to 30 percent lower than legacy models.

 

Health insurance in the U.S. is at the cusp of a major transition from an employer-driven payor model to a model directly involving many more employees and consumers. Private health insurance exchanges with a defined contribution approach represent a significant step toward catalyzing this change. In this paper — part of an ongoing series of Strategy& perspectives on the shift to consumerism in health insurance — we consider the impact of this change on the payor industry and the strategic approach that leading companies need to take.

 

This perspective describes Strategy&’s approach to change management and lays out the five key success steps in any successful change management program.

 

Health Care’s Retail Solution
A robust retail market is emerging from the ashes of the current health-care system.

 


HeALS
Bundled care (a care delivery and payment mechanism which offers a single price for all services associated with a procedure) has revealed itself to be an essential component of any future care delivery model that intends to deliver better care and outcomes at a reduced cost. Our annual bundles survey results share the attitudes and perceptions of key stakeholders toward bundled care.

 

Healthcare Shifts from à la Carte to Prix Fixe
A bundled approach to treatment offers higher quality, lower costs, and a better experience for patients.

 

The healthcare system is slowly evolving from a model that pays providers for discrete activities, to a “bundled” model that ties payment to outcomes and requires stakeholders to collaborate in the integrated delivery of interrelated services. This report provides an overview of healthcare bundles, including the history of their development and the outlook for their future. It is meant to inform discussions among healthcare decision makers as they forge a path for bundled care.

 

Bundled Care: The Opportunities and Challenges for Providers
Bundled care is one approach to extending health care to all Americans at affordable prices with no sacrifice in quality. This is the second in a series of Strategy& articles on bundled care. The first dealt with consumer perceptions of bundles, and this Perspective presents survey data from providers: physicians and hospitals.

 

download
The goal of extending healthcare to all Americans at affordable prices and with no sacrifice in quality, will require huge changes. One model that has already gained traction is bundled care, a complete package of care, financing, and support for a specific condition that breaks with the de facto medical model of fee-for- service (billing for each activity separately). In a bundle, a single fee covers everything related to a condition or procedure in an end-to-end construct that has the potential to vastly improve the consumer’s experience. As the results of a recent Strategy& survey demonstrate, U.S. consumers appear ready for the advent of health bundles.

 


PMx
Bundled Care: The Opportunities and Challenges for Providers
Bundled care is one approach to extending health care to all Americans at affordable prices with no sacrifice in quality. This is the second in a series of Strategy& articles on bundled care. The first dealt with consumer perceptions of bundles, and this Perspective presents survey data from providers: physicians and hospitals.

 

A Strategist’s Guide to Personalized Medicine
Breakthroughs in pharmaceutical innovation are poised to change the prevailing business model of the industry — with dramatic effects on healthcare costs and practice.

 

Invest or Not to Invest...Not Always an Easy Question to Answer
An expert panel discussion, including Avi Kulkarni of Strategy&, on investment and development in the in vitro diagnostics industry.

 

This perspective describes Strategy&’s approach to change management and lays out the five key success steps in any successful change management program.