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New Competitive Arena Emerges for Pharmaceutical Companies in Healthcare's Changing Payment Landscape, Finds PwC Health Research Institute Study
Date:5/17/2012

over the life of a drug. 

 

  • Force #4:  Health plans and employers realize they are losing money on patients who do not take their medications properly.  Though prescription drug expenditures are only about 10 percent of total U.S. medical spending, the effects of drug non-adherence cost the health system hundreds of billions of dollars each year.

 

  • Force #5:   Technology and increased transparency of health information are empowering patients to be more involved in decisions about therapeutics.   When patients take the helm of their health decisions, drug manufacturers' discounts may carry less weight in formulary design.  Rather quality and outcomes become the larger considerations.

"As the U.S. health system undergoes significant change regardless of legislative or legal actions, a new definition of value is emerging, one that places patients and their desired outcomes at the center of the universe," said Karla Anderson, partner, PwC pharmaceutical and life sciences advisory services group.  "Leading pharmaceutical companies are increasing their alignment with the rest of the 'four P's' in healthcare -- providers, payers and patients.  They are creating new expectations across their organizations to re-orient their definition of value for each of these groups."

The HRI report outlines steps that pharmaceutical and life sciences companies are taking to create new value.  Some are focusing on developing the next innovative drug, independently.   Some are collaborating with health plans, purchasers, medical device makers and others.  Data-sharing agreements are being sought to gain access to clinical information needed to demonstrate and improve outcomes. Half of pharmaceutical executives in a recent HRI survey about

SOURCE PwC
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