The healthcare industry in America is always expanding. The statistics for healthcare show that by 2023, the industry should bring in an incredible $8.7334 trillion, up from $7.077 trillion back in 2015. Pharmaceutical companies have long been poised to benefit from this growth. They seek to expand to take advantage of the aging of population not only in the U.S. but in the developed world.
Yet, with great growth and opportunities come equally great challenges for next year in 2023. The disadvantage to the pharma business’s ongoing expansion is that it has become a victim of its complexity. Increasing demands have made it much more difficult to manage the various tasks, objectives, and workflow practically. We look at seven of the most common challenges faced by the health care industry and the need to solve in 2023 in this article.
The Research and Testing of New Drugs Is Rife With Inefficiencies Today
New drugs go through a long-term pipeline to the marketplace, particularly in developed countries with rigorous oversight and regulatory agencies (like the FDA in America). Unfortunately, a growing challenge surrounds the inefficiencies that have increased in new medications’ research and testing phases. These problems range from issues with compliance to missing critical deadlines.
Noncompliance has become an especially costly issue that plagues many of the large companies in the industry today. This ever-present threat now hangs over the pharma industry and individual companies worldwide. The sums involved range from $10,000 for preventative and corrective actions to anywhere from $20 to $100 million for changes implemented following a warning letter.
Transforming Inventory Management
Inventory remains a critical issue in the pharmaceutical business. Experts have observed that the biggest problem arising from it results from inefficient inventory systems. Much of the industry is still using a manual inventory management system. It means they do not have a way to consolidate their information in a single system and place. The manual inventory system prevalent in most pharma companies today is counter-productive.
Manual inventory and delivery systems also allow for all too common human errors. These mistakes cause faulty inventory counts and an imbalance in supply and demand. Manual counting requires significant effort and time, causing the process to be entirely inefficient.
The key is finding an inventory system that has the technical specs needed and is user-friendly to allow for easy adoption and use.
How To Convince Management to Spend on Improvements to Delivery Systems
Delivery systems are an extension of the inventory management challenge. The inefficiencies of accurately getting inventory out are a problem that can not be ignored for needed future improvements in corporate productivity. One proposed solution is to utilize an RFID Radio Frequency Identification that has been demonstrated to boost accuracy in inventory from between 70 percent to 97 percent.
RFID tracking can massively transform the delivery system (and inventory management system) for firms that can not keep track of their inventory and get it more efficiently to the end markets and doctors’ offices. Such RFID tracking could eliminate the needs to track arrivals and departures manually. Its implementation requires software system improvements to support this type of RFID tracking.
Improving the Customer Experience
Customers are expecting and demanding more from pharmaceutical companies today. It is necessary to begin understanding these issues and addressing them. This is not just about the pricing of new and existing drugs. Improvements are needed with consumer interaction to become streamlined and convenient to the point that their healthcare transforms into a natural part of everyday life for families and individuals. Currently, customer service and interaction are stagnant.
Dealing with Increasing Amounts of Data
Big Pharma is wrestling with addressing new additional data streams that are not standard, unstructured, and highly variable. This includes Rx, labs, histories, mHealth, sensors, IoT, geographic, socioeconomic, demographic, genomic, and behavioral. The data and analytics can be utilized to improve healthcare outcomes, improve efficiencies, and help transition from volume to value. It will also boost the effectiveness between providers, individuals, and payers.
Modifying Business to Adapt to New Payment Models
As costs for medicines remain high, Big Pharma is facing a variety of new payment models that it must adapt to in 2023 and beyond. These so-called next-generation models require companies to develop and integrate operational and technical infrastructure with programs that work towards a fairer way of managing the costs, risks, and outcomes. Some of these new payment models include shared savings, bundled payments, risk-sharing, and episodes of care.
Effective Health Care Digital Marketing Strategy
The effective use of digital channels to build brand awareness and a customer base are two of the primary digital transformation challenges the health care industry faces. Many hospitals, Dr. offices, and other healthcare facilities have difficulty being efficient, effective and measuring the impact of their marketing channels such as paid media, enterprise SEO, Local SEO, content strategy, or social media. One of the primary challenges these companies have is their digital experience, website design, and brand presentation. There are several marketing challenges that the industry will face in the year 2023. However, there is also room for growth.
Addressing Changing Healthcare Policies in the Developed and Developing World
Healthcare policies are changing rapidly in both developed and developing markets. In the U.S., these policies include repealing and replacing existing healthcare legislation and regulations. There is a continued political divide leading to uncertainty for the future direction of U.S. policy. Some other proposed policies that could dramatically impact the pharmaceutical industry include single-payer, Medicare-for-All, block grants, Medicare and Medicaid buy-in, provider directories, short-term policies, association health plans, and still more political mandates.
Meanwhile, in developing markets, the challenge is adapting to governmental policies that favor local pharmaceutical firms over the major international ones. Cost containment justifies this bias towards cheaper generic makers and producers. Protection laws and intellectual property rights may change here continuously to favor the local firms. Yet these are the markets where the biggest growth opportunities are today. Big Pharma management must spend an increasing amount of time developing market focus or risk becoming completely shut out of some of these potentially critical future markets in 2023 and beyond.
The challenge is that traditionally slow management teams must move increasingly fast to stay abreast of all the policy changes in developed and developing markets to remain competitive and retain market access. It is only one of the most common challenges that must be addressed in 2023 for the healthcare industry to succeed. It remains to be seen how the pharmaceutical industry will manage so much adaptation at once in a short time.