March 27, 2019
Health-care executives are keeping an eye on large companies such as Amazon, Apple and Walmart, with one-third of executives saying they are worried about continued disruption from new entrants into the health-care market, according to reporting by Scott Wooldridge in Benefits Pro.
This finding is part of the 9th Annual Industry Pulse Survey, conducted by Change Healthcare and the Healthcare Executive Group. The study found that one-third of health care executives (32 percent) said they felt new entrants into the market would disrupt current business models.
“This response suggests that health-care leaders recognize that external entrants will force the industry to change how it conducts business,” the report said. It added that change has been a constant in the industry for years, but the pace of change is accelerating.
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“Health care is navigating disruptions on multiple fronts, and as a consequence, payers and providers are finding themselves stretched thin as they try to address a perfect storm of change,” said David Gallegos, SVP, Consulting Services, Change Healthcare. “As if insurance market changes, value-based care, consumerization, and regulatory uncertainty weren’t enough, this year the industry is facing a new breed of market entrants and innovators whose impact remains unknown, but could be substantial. Even the largest health-care organizations don’t have the people and processes to move on all these fronts alone, yet they can’t ignore these changes.”
Other developments that may disrupt the industry, according to the survey findings, are:
Innovations in care delivery (13 percent);
Refinement of consumer experience (11 percent)
Supply chain innovations (9 percent)
The launch of vertical, all-in-one health-care companies (8 percent)
Advances in artificial intelligence capabilities (7 percent)
“With all these uncertainties, one thing is sure: Industry concern over external disruption is widespread,” the report said.
