Navigation Links
Adoption of Personalized Medicine May Yield Significant ROI; Time to Achieve Benefit Varies Among U.S. Health Care Stakeholders, According to Deloitte Report
Date:1/27/2009

Greatest ROI Opportunity for Consumers in Shortest Period of Time

WASHINGTON, Jan. 27 /PRNewswire/ -- As the new administration examines the potential investment in targeted therapies that utilize personalized medicine to improve patient care, a new report released today by the Deloitte Center for Health Solutions found significant opportunities for the adoption of personalized medicine to produce a positive return on investment across key stakeholders in the U.S. health care system. The report, released today at the Personalized Medicine Coalition conference, "Achieving ROI in Personalized Medicine: Barriers, Incentives and Pathways to Successful Commercialization," also found that consumers stand to gain the most significant ROI opportunity within the shortest time period.

(Photo: http://www.newscom.com/cgi-bin/prnh/20090127/NY63078)

"Personalized medicine is not a promise of the future; it is fast emerging as the current state in diagnostics and therapeutics," said Terry Hisey, vice chairman and U.S. industry leader for Deloitte LLP's Life Sciences industry group. "The U.S. health care system will confront an array of challenges to expedite development to make personalized medicine a reality. Our report examines opportunities to overcome these obstacles, from access to capital to stimulate increased R&D to how to justify coverage by health plans often pressured for short-term savings."

Assessing the barriers and incentives for advancing the adoption of personalized medicine, the Deloitte report, "The ROI for Targeted Therapies: A Strategic Perspective," provides an analysis of personalized medicine's economic value proposition. It examines the importance of ROI for multiple stakeholders -- consumers, diagnostic companies, pharmaceutical and biotechnology companies and payors.

Deloitte developed a framework that factored in the ROI for personalized medicine by examining case studies categorized by two scenarios -- altering the course of therapy or introducing a companion therapy -- across a number of clinical conditions, ranging from HIV/AIDS to breast cancer. The results of the analysis found that the ROI and time to yield benefit varied by scenario across each stakeholder group.

According to the report:

  • The literature review of two clinical scenarios found that all stakeholder groups experienced a positive ROI under certain conditions.
  • Consumers consistently experienced a positive ROI across all scenarios.
  • Payors received only a marginal benefit, and that was after six years.

"Personalized medicine facilitates better care and lower costs, and has the potential to benefit every major stakeholder in the U.S. system -- most importantly, its patients," added Paul Keckley, Ph.D., executive director of the Deloitte Center for Health Solutions.

Highlights of key stakeholder implications found in the report include:

  • Consumers stand to gain the greatest ROI from personalized medicine, often within the first year. However, upfront costs will likely be required because these therapies may be more expensive than conventional treatments. Long-term benefits of personalized medicine create an incentive for adoption, although education will also be critical to help consumers make informed care decisions.

  • Providers will benefit from the new tools offered by personalized medicine to improve patient care; however, reimbursement issues will need to be worked out with payors. Additionally, as providers implement electronic health records, new decision-support tools will help facilitate the adoption of disease-specific standards of practice that can provide real-time data to help prioritize therapies based on potential drug interactions and patient clinical profiles.

  • Payors may want to factor in personalized medicine products into the equation as the employer-sponsored model evolves into a retail health insurance model, providing the opportunity to include customized products. Plans may also benefit as personalized medicine may help slow the advancement of conditions and diseases that, left untreated, result in more expensive acute care interventions and institutional care. Additionally, they may also desire government subsidies, premium tax reductions and abatements to make coverage of personalized medicine more profitable.

  • Policy makers will need to consider incentives for commercial health plans to adopt personalized medicine by leading by example (for example, reimbursing these technologies). They can also consider leveraging the connection between personalized medicine with the Orphan Drug Act, as well as supporting R&D tax credits (or other strategies) for the biotech/pharma industry to encourage its personalized medicine development efforts.

  • Biotech/Pharmaceutical and diagnostic companies may need to consider more virtual R&D to address smaller markets with more targeted therapies to reduce R&D expenditures, as well as collaborate with affiliates, such as academic medical centers and research organizations. The continued trend toward M&A and partnerships may also pick up as personalized diagnostic companies may become prime investments or acquisition targets. New strategies to integrate marketing, sales and distribution with companion diagnostics will need to be considered to improve the cost effectiveness of these activities.

Related Resources:

Profile: Paul Keckley, Ph.D. (www.deloitte.com/us/PaulKeckley)

Full Report: The ROI for Targeted Therapies: A Strategic Perspective (www.deloitte.com/us/TargetedTherapiesROI)

About Deloitte

As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services LP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

About the Deloitte Center for Health Solutions

The Deloitte Center for Health Solutions is a part of Deloitte LLP. For more on the Center and its work, see www.deloitte.com/centerforhealthsolutions.


'/>"/>
SOURCE Deloitte
Copyright©2009 PR Newswire.
All rights reserved

Related biology technology :

1. Adoption of Spinal Nonfusion Technologies Doubled in One Year
2. IC Sciences Launches ICS Alliance to Advance Development and Adoption of Informatics Instruments for Next Generation Healthcare
3. Novo Nordisk Applauds Adoption of World Diabetes Day Resolutions by U.S. Congress
4. YM Biosciences announces adoption of renewed Shareholders Rights Plan
5. MDV Expands Team Pursuing Advances in Personalized Medicine
6. Connecticut State Medical Society and Genomas Co-Sponsor Forum on DNA-Guided Medicine and the Path to Personalized Health Care
7. As personalized, genomic medicine takes off, four developing countries show the way for others
8. OSU to Host National Personalized Health Care Conference
9. US Oncology Appoints Stephen Smith Vice President/General Manager Research and Personalized Science Services
10. MammaPrint(R) Breast Cancer Test Provides Valuable Insight for Personalized Treatment Decisions
11. Former CMS Administrator: "Blunt Instrument Policies an Increasingly Bad Fit in Era of Personalized Health Care"
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/4/2016)... 4, 2016  CytoSorbents Corporation (NASDAQ: CTSO ... flagship CytoSorb® blood filter to treat deadly inflammation ... world, announced that CEO Dr. Phillip Chan ... Capital Group,s 2016 Disruptive Growth & Healthcare Conference, ... Conference Presentation Details: Where: Convene ...
(Date:2/4/2016)... -- --> --> Q ... to provide the following update on recent corporate developments. ... 3 months we have significantly increased our cash position through ... a result, we have positioned ourselves to execute on the ... expect that development to continue on schedule. ...
(Date:2/4/2016)... Feb. 4, 2016  Spherix Incorporated (Nasdaq: SPEX ... and monetization of intellectual property, today provided an update ... the Northern District of Texas ... Inter Partes Re-examination ("IPR") proceedings that ... The IPR was initiated on only certain claims of ...
(Date:2/4/2016)... ... 2016 , ... Franz Inc. , an early innovator ... been recognized As “ Best in Semantic Web Technology - USA & Leader ... it’s our priority to showcase prominent professionals who are excelling in their industry ...
Breaking Biology Technology:
(Date:1/18/2016)... Calif. , Jan. 18, 2016  Extenua ... software that simplifies the use and access of ... and go-to-market partnership with American Cyber.  ... brings extensive experience leading transformational C4ISR and Cyber ... and integrating the latest proven technology solutions," said ...
(Date:1/11/2016)... 11, 2016 Synaptics Incorporated (NASDAQ: SYNA ... announced that its ClearPad ® TouchView ™ ... two separate categories in the 8 th Annual ... Technology Breakthrough. The Synaptics ® TDDI solution enables ... chain, thinner devices, brighter displays and borderless designs. ...
(Date:1/7/2016)... This BCC Research report studies the global ... devices, identifying newer markets and exploring the expansion of ... devices. Includes forecast from 2015 to 2020. ... explore the expansion of the present application market for ... biometric technology, determine its current market size, and estimate ...
Breaking Biology News(10 mins):