Gartner Research

Life Science Manufacturers Must Support Healthcare Providers as They Transition to Outcome-Based Payments

Published: 27 September 2016

ID: G00307828

Analyst(s): Stephen Meyer , Eric O'Daffer

Summary

As healthcare revenue models change from fee-for-service to outcome-based, life science manufacturers must take action to support healthcare providers. Supply chain leaders in life sciences can use this research to learn how to prepare their businesses for this transition.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The need for health systems to measure the cost, quality and outcomes of the care they provide requires life science manufacturers to do the same for their products
    • The cost-quality-outcome relationships of your products must be quantitative
    • Your supply chain and your customers' value expectations should be aligned
  • Improving the efficiency of the end-to-end healthcare supply chain means that life science supply chains need to simultaneously improve internal operations while collaborating to improve the multienterprise supply chain
    • Operations-to-operations relationships with customers are key
    • Your supply chain expertise can benefit healthcare providers
    • Internal improvement focus should start with inventory and replenishment
    • A cost optimization mindset is invaluable
  • Health systems are standardizing products to reduce unnecessary variation, improve care and lower cost, so life science manufacturers must scrutinize their portfolios from multiple perspectives to provide a streamlined offering
    • Distributors/wholesalers and providers can help evaluate your product portfolio
    • You need to pursue a role in your company's product development strategy

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