Payers and regulators in the healthcare industry have drawn a line in the sand demanding a more integrated approach to drug development. They are setting the stage for a revolution that will engage systems-oriented strategies to drive patient outcomes and value-driven solutions—and biopharma leaders will need to adapt their strategies to succeed.
Systems-thinking is the future, and the transformation of the industry has already begun. Physicians and hospitals are implementing information-sharing technologies; regulators and others are conducting Health Technology Assessments (HTAs) which focus on value and quality as well as safety and efficacy; and payers are raising requirements for measurable results as a stipulation for reimbursement. But there is still much work to be done.
The journey will be difficult for everyone on the healthcare continuum, but biopharma faces the greatest challenge. Biopharma companies may recognize that change is needed, but the industry must accelerate its response to seize the opportunity. They continue to roll out incremental adaptations that drive minor improvements while the healthcare sector clamors for a revolution. Regulators and payers want a new system that ties payments to proof of value, and the only way biopharma companies can measure up is by embarking on an entirely new way of doing business.
Part of this shift means embracing systems-oriented strategies that use transparency and cross-industry strategic partnerships to exploit the power of comprehensive solution-driven biopharmaceutical medicine. Once they accept this new systems-thinking paradigm, they will once again find their place within the new healthcare economy.