Over 200 healthcare deals worth $72.6 billion were announced in the first quarter of 2018. This represents the surfacing of new business models in the United States (U.S.) with a singular objective of reducing costs, creating value and be more competitive. These deals allow eminent plays to shift to a system based on value of car where it better meets consumers’ needs and expectations of a healthcare experience.
The four emerging archetypes of new healthcare deals are (1) Vertical integrators (2) Employer activists (3) Technology invaders (4) Health retailers. If these new models have positive progression, they will result in disruption. The healthcare industry is set to transform even though changes will take place in gradual phases; and companies will have to learn to adapt to the changes of this dynamic landscape. Private equity has excess funds and its eyes on healthcare. Further, as large organisations continue to merge, they will leverage their size to place greater emphasis on enhancing customer engagement.
Customer experience is set to expand and prompt deals. At present, healthcare is an industry that has the lowest Net Promoter Score. As such, numerous organisations have been looking at alternatives to utilise data and technology to advance patients’ experiences. New models also foster new cultures. As companies continue to search for ways to deliver more values-based care through acquisition and partnerships, they will also have to looking into methods to push for a culture shift.
It is important to note that while the health services industry can expect to see substantial deals; they will have to stay cautiously optimistic.
Source: STAT
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