Three Main Forces of Medical Industry

For healthcare consumers, as different medical organizations and innovative services participating in the new medical economy, a variety of driving forces could have broad influence on current medical industry. 

At first, it is the M & A boom. In recent, high-profile mergers and acquisitions boom is likely to continue, and the focus will still be gathered on the insurance company, because the regulatory agencies believe that industry consolidation will benefit consumers, especially the healthcare industry. Insurance companies are actively seeking a competitive advantage, such as diversified sources of income, IT infrastructure and powerful data analysis functions. If these large-scale merger plans are approved, they could further stimulate the acquisition of a chain reaction, thereby affecting the entire medical industry. Although the insurance company will be the protagonist under M & A boom in the coming year, entire healthcare industry is also showing a rising trend in mergers and acquisitions activity, which means medical services suppliers have focused on reinforcing the brand. 

Secondly, the drug price have reached boiling point so that modern pharmaceutical industry’s concern is to finding the balance between price and innovation, namely how to price “ just right”. Under the pressure of strong government policies, pharmaceutical companies are considering to apply new ways to get people to agree with the price of drugs. In fact, many factors have contributed to the price rise in this dispute. Since 2006, the rise in the price of brand-name drugs has also been more than the inflation rate, even the price of generic drugs. With many development costs exceed $ 100,000, it is necessary to expand market share for new specialty drugs, which will result in the rising trend of drug price. Value is increasingly important in drug pricing decisions.

Finally, the most important factor is medical consumerism. High-deductible health insurance plans could exist everywhere. Of-pocket expenses of patients are constantly increasing, as well as uncompensated hospital care costs. Faced with such a medical billing and payment system, patients often feel very depressed. Most customers hope to begin to manage their own medical expense manners, using new medical plan that is similar to 401k retirement plan. Such idea has affected the entire industry. Consumers, especially the young, have expressed a strong interest. They prefer to use those plans designed to develop health services. In addition, more and more consumers are responding to the financial adviser of this appeal. 

Taking all the details into consideration, major health issues demands more attentions than before as the development of personalized healthcare, which might contribute to helping consumers make better resource allocation decisions.

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