Healthcare is being transformed due to consumer-centric pressures, according to The Marketplace Revolution, a new report from Oliver Wyman. The report shows how consumerism is powering a complete remodelling of the healthcare industry. This transformation is about much more than patient-centric innovations; it is an emergence of an entirely new business design, one that ignores the constraints of the existing healthcare market to deliver health and wellness on consumers' terms. As detailed in the report, this next-generation business design is driven by consumer needs, not sick-care insurance codes and plan design. This new model will enable Health Market 2.0, where multiple industries will converge to create a new consumer health, wellness, and better-living marketplace. According to Oliver Wyman analysis, this new business model will drive a $6 trillion health, wellness and better-living market – one that is dramatically more effective, with 40 percent better value and a greatly improved consumer experience. "It's not a question of if the industry will evolve, but how new and established players will define their roles in the new consumer-centric health marketplace. This is a once-in-a-generation transformational opportunity and ensures collaboration from current businesses in the sector as well as innovators, as both are essential to this new borderless design," said Tom Main, Partner and US Leader for Oliver Wyman's Health and Life Sciences Practice and co-author of the report. Middle East healthcare For the Middle East healthcare markets, the consumer-centric disruption comes at a time of significant transformational pressures. The current health systems in the GCC countries suffer from high costs, varying quality of care, and a general lack of transparency. "By embracing consumer-centric care model innovations, GCC health systems can leapfrog into globally leading health markets," says Dr. Sven-Olaf Vathje, partner and MEALeader for Oliver Wyman's Health and Life Sciences Practice. "Especially the chronic care sector can significantly benefit from new models of care that increase patient engagement and control. "In many markets, established providers and new technology players have already teamed up to create a new chronic care hub. In this hub, digital and mobile technologies are converging with biometric monitoring devices, cloud-based data aggregation, and personalized health coaching to create a more affordable and effective chronic care management system. "Many younger Middle Eastern consumers are tech savvy and approachable with modern, individualized models of care. The mass individualization of care — be it for prevention, acute care, or chronic disease management – represents a unique opportunity in a region where access to care in some parts has historically been a challenge," added Dr. Vathje. The expansion of traditional sick care into more comprehensive health and wellness offerings can also drive economic growth in the GCC region. "The health ecosystems in GCC economies are currently underdeveloped," explains Dr. Vathje. "A compelling next generation health offering can fuel growth of domestic health businesses and create stable, attractive private sector jobs." Disrupting the industry The Marketplace Revolution defines business designs used by companies including Uber, Amazon, and Airbnb to disrupt industries and now is being employed by an increasing number of healthcare companies and organizations. "The largest near-term impact will come from connecting related markets. By connecting health, wellness, and lifestyle, we will begin to break the economic downward spiral of the fee-for-service sick-care system and enable a new generation of health-and-wellness companies to reach customers, while ensuring that the sustainability of our health systems is on track," said Main. "The current business models only address a small part of patients' needs. This new design connects the dots for consumers to access the health and wellness market on their terms," Main concluded. — SG
