Today the healthcare industry is facing a tsunami of inexorable market forces that are leading to major global disruptions, transformations and collapses of traditional systems. A large part of this is emanating from the convergence of technology into biology, resulting in cross pollination of disciplines, countries, policies and regulations. With the democratization of data, power and authority are shifting resulting in the consumer achieving the status of “King” or “Queen” of the healthcare system. Below are a few mega trends we can expect to transform the industry over the next five to seven years.
Diagnostics and prediction usurp primary dollars from therapeutics: Services become paramount rather than product per se
The healthcare industry has primarily focused on treatment. For example, according to Frost & Sullivan research, in 2012, the segment of global healthcare expenditure on treatment was 60 percent, compared to only 20 percent of revenue attributed to diagnostics. By 2025, the forecast shows therapeutics will decline to approximately 35 percent of total global spending while diagnostics and prediction will increase to 28 percent and 22 percent cumulatively.
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Source: Reenita Daas (www.forbes.com)
