Healthcare and the Pharmaceutical Industry as a Business Model

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HSA 500-Assignment 5 Health Care
By: Catherine Carr
HSA 500
Strayer University
December 10. 2012

From the video, assess how regulations in the U.S. impact the claims and facts presented in this video. Hypothesize where you think the biggest opportunity will be for the pharmaceutical companies. By 2020 the pharmaceutical market is anticipated to more than double to US$1.3 trillion, with the E7 countries — Brazil, China, India, Indonesia, Mexico, Russia and Turkey — accounting around for one fifth of global pharmaceutical sales. Further, incidence of chronic conditions in the developing world will increasingly resemble those of the developed world. Pharma by 2020 indicates that the current pharmaceutical industry business model is both economically unsustainable and operationally incapable of acting quickly enough to produce the types of innovative treatments demanded by global markets. In order to make the most of these future growth opportunities, the industry must fundamentally change the way it operates. Some of the major changes PwC anticipates for the industry are: * Health care will shift in focus from treatment to prevention. * Pharmaceutical companies will provide total health care packages. * The current linear phase research & development process will give way to in-life testing and live licensing, in collaboration with regulators and health care providers. * The traditional blockbuster sales model will disappear. * The supply chain function will become revenue generating as it becomes integral to the health care package and enables access to new channels. * More sophisticated direct-to-consumer distribution channels will diminish the role of wholesalers. Marketing the future, the third in the series discusses the key forces reshaping the pharmaceutical marketplace, including the growing power of healthcare payers, providers and patients, and the changes required to create a marketing and sales model that is fit for the 21st century.

Challenging business models, the fourth in the Pharma 2020 series, this report explains why Pharma's fully integrated business models may not be the best option for the pharma industry in 2020 and why more creative collaboration models may be more attractive. The paper also evaluates the advantages and disadvantages of the alternative business models and how each stands up against the challenges facing the industry.

Taxing times ahead, the fifth in the series focuses on the industry's opportunities and challenges from a tax perspective. It discusses how the political, economic, scientific and social trends currently shaping the commercial environment, together with the development of new, more collaborative business models, will exert increasing pressure on effective tax rates within the industry. It also shows how companies can adapt their tax planning to support the provision of outcomes-based healthcare and remain competitive.

The vision, the first in the series highlights a number of issues that will have a major bearing on the industry over the next 11 years. The publication outlines the changes we believe will best help pharmaceutical companies realize the potential the future holds to enhance the value they provide to shareholders and society alike.

Supplying the future -- Which path do we take?

How pharma companies will have to develop different supply chain models for different product types and patient segments, learn to use their supply chains as a means of market differentiation and source of economic value, and recognize the key role information will play flowing upstream to drive the downstream flow of products and services.

Identify and describe at least three of the most difficult issues facing health care in the United States today. 
Three of the most difficult issues facing health care in the United States today are the uninsured and the...
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