09.

2020
Future of health 2 |
The rise of healthcare platforms
MANAGEMENT SUMMARY

Future of health 2 /
The rise of healthcare platforms

Global spending on digital health is expected to reach almost EUR 1 trillion by

2025. With a wide variety of digital platforms reshaping the market, from pure
data platforms to integrated meta-platforms, the industry is grappling with
a number of questions of existential importance. What type of platforms will
dominate the market in the future? What makes some platforms more successful
than others? Who will be best positioned to own the patient interface? And
which players face the greatest disruption to their business model?

Our second Future of Health survey, building on our 2019 investigation, provides
some answers to these questions. Industry insiders are expecting even stronger
growth of digital health than a year ago, partly driven by the Covid-19 pandemic.
They see customer experience as the number-one success factor of platforms,
more important even than perceived health benefits. Healthcare providers are
best positioned to "own" patients, while tech companies have a stronger starting
point when it comes to preventive care. Rather than consolidation, the industry is
expecting platforms offering specific services to retain their important role in the
period until 2025 – particularly in Europe.

Ultimately, it appears that everything is still to play for. Healthcare players must
fine-tune their radars and identify upcoming trends in the market. Only then can
they define an appropriate strategy for their business, be that building their own
platform or entering into partnerships with other players. Access to a strong
network of platforms will be a key success factor for all types of players, and this
may require boosting the company's "collaborative IQ".

For all types of healthcare players, the key message is clear. It is time to define
a platform strategy – and with no clear winner in sight, there is no time like the
present to make your platform play.
 PAGE CONTENTS

4 1 A sector in transition
Platforms are transforming healthcare

7 2 More change is coming

Industry experts give their predictions for the next five years

19 3 Our recommendations
Healthcare players must prepare for the next normal
Cover photo KTSDESIGN/SCIENCE PHOTO LIBRARY/Getty Images

Future of health 2 / The rise of healthcare platforms | 3

1 / A sector in transition
PLATFORMS ARE TRANSFORMING HEALTHCARE

T
here is no doubt about it: Digitalization has TYPES OF HEALTHCARE PLATFORMS
transformed our day-to-day lives. Hardly an hour A wide range of platforms currently occupy the healthcare
goes by when we do not go online to book a ride space, ranging from "pure data platforms" to "integrated
with Uber, arrange a vacation with booking.com or order meta-platforms". The field is highly fragmented: In
some new product from Amazon. Our regular, everyday our survey, the results of which we present below, no
activities have to a large extent shifted onto digital one platform was mentioned more than three times
platforms. by respondents as an example of best practice. Yes,
We all know what "digital platforms" are in practice, platforms are critically important. But right now it
but how can we best define their role and function? is impossible to say which particular platforms will
Broadly speaking, digital platforms bring together dominate in the future – or whether, indeed, this is how
customer groups with similar interests, using network the landscape will develop.
technologies and often data pools to provide superior We can classify the different platforms found
services to customers, such as a wider choice of in healthcare by the following categories: pure data
service providers. They strive to achieve critical mass platforms, platforms with horizontal integration,
and eventually dominate their markets. Already, they platforms with vertical integration, and integrated meta-
encompass practically all areas of the economy. platforms.
The healthcare market is no exception. There is little First up is the pure data platform. These platforms
doubt among experts that platforms will also transform create value out of collecting and analyzing large amounts
the healthcare sector in the coming years. Industry of data, which is then used to improve diagnoses and
platforms already integrate healthcare services and generate personalized treatment plans, as well as better
different technologies to provide a customized, end- and more tailored products and services, ultimately
to-end solution for users and patients. Applying new leading to better outcomes. Pure data platforms also
business models, they enable an improved customer enhance patient engagement. For example, 23andMe,
experience with easy access to different services and which provides a direct-to-consumer genetic testing
treatments, greater efficiency and – in theory, at least – service, has access to data from more than 9 million
improved outcomes. patients.1 IQVIA, a global provider of advanced analytics,
Compared to platforms in other industries, healthcare technology solutions and clinical contract research
platforms are both more complex and more fragmented. valued at around EUR 9 billion, has access to millions
Want to order lunch? Simply visit your favorite platform of items of data from patients, providers and payors.
and choose between the offers from different restaurants, Amazon, thanks to its cooperation with Cerner, now has
listed side by side on the website. Want an online medical access to around 200 million pieces of patient data.2
consultation? That is not quite so straightforward. Type Platforms with horizontal integration generally focus
"online doctor" into Google and you get more than four either on a specific indication, such as cancer or diabetes,
million hits in less than a second. Healthcare consumers or on a specific treatment setting, such as health
are currently faced with a large number of single-solution
providers offering different services with various pricing 1
 echnology review (2019): More than 26 million people have taken
T
an at-home ancestry test
models. More often than not, they are left feeling confused 2
Beckers Hospital Review (2019):
– and not a little exasperated. How-amazon-is-making-strides-in-the-healthcare-space

4 | Focus
A: Meta-platforms interlink players across the healthcare system
Tencent's network of healthcare players in China

Platform "AI" –
health indicator
monitoring NOVARTIS
Disease information
and services
Collection
MERCK
of millions of pieces
of patient data for
AI-based analysis Platform for AI-
based diagnostics 38,000 accounts
WeChat of health service
providers
iCarbonX Miying
24,000 health
Healthcare applications

Distribution of
e-commerce platform
for health products with
300 million customers TENCENT
Access to
virtual assistant
JD.COM Babylon

Platform So-Young
for beauty
treatments
WeDoctor

Shuidi
Huzhu
Online
Payment of appointments with
hospital bills in about
WeChat
Trusted Health approximately
2,000 hospitals Pay 290,000 doctors
Doctors insurance
Ambulatory care as based on and 2,700 hospitals
subscription model crowdfunding

Source: Tencent, Roland Berger

Future of health 2 / The rise of healthcare platforms | 5

management within companies. They support users Integrated meta-platforms operate on an even
along the entire patient journey. For example, health larger scale. They interlink most of the players in a
and wellness engagement platform Sharecare, provides specific healthcare system and are both vertically and
consumers with personalized information, programs and horizontally integrated. The Chinese group Tencent is a
resources for improving their health. Another platform, good example. It brings together different categories of
Deep Lens, matches cancer patients with clinical trials players: iCarbonX collects millions of pieces of patient
and treatments. One Drop, a diabetes management data for evaluation using artificial intelligence (AI);
platform, offers solutions for glucose monitoring via WeDoctor enables online appointment scheduling
an app and personal health coaching. Siemens recently with around 290,000 doctors and 2,700 hospitals; and
acquired Varian and has created an integrated platform WeChat integrates 38,000 accounts belonging to health
to address the entire cancer care path, from screening service providers and offers 24,000 health and wellness-
and diagnosis to care delivery and post-treatment. related "Mini Programs".4 Tencent integrates digital
Platforms with vertical integration do not focus on and analog care processes, at the same time collecting
specific indications but integrate different steps along large amounts of data. The company also cooperates
the value chain or patient journey. Quite often, they with startups and pharmaceutical companies from
connect players from different parts of the healthcare Europe. A
value chain, such as pharmaceutical companies with Some integrated meta-platforms go even further,
pharmacies, or telemedicine providers with hospitals. encompassing a country's entire public health system.
In this way they support collaboration across disciplines Saudi Arabia, for example, has launched two healthcare
and specialties. Some also operate across international initiatives – the Saudi Health Insurance Bus (SHIB)
borders. The insurance company AXA in Mexico connects Project and the Saudi e-Health Record (SeHE) Platform
insurance services with treatments via its technological – which will together create an integrated platform
platform SaludOnNet, which brings together more than called UniPlat, a national e-health program for the
22,000 clinics and hospitals including many outpatient digital transformation of all healthcare-related services
medical care centers and more than 250,000 patients.3 In in the country. The aim of the platform will be to
Switzerland, Zur Rose Versandapotheke cooperates with increase efficiency for payors and providers and deliver
the supermarket chain Migros and has recently acquired an enhanced healthcare experience to the country's
TeleClinic, a provider of medical video consulting. citizens.
Hospital chain Asklepios cooperates with startup Samedi Given the current diversity of platforms and
for digital appointment booking. And global tele-health fragmentation of the healthcare landscape, a number
leader Teladoc has recently announced an EUR 18 billion of questions present themselves. What type of platform is
merger with chronic disease platform Livongo with the likely to dominate in the future? Will we see a multiplicity
aim of offering technology-enabled longitudinal care – of platforms with no one particular type dominating?
the largest digital health deal seen to date. What makes certain platforms successful and others less
so? Who will own the patient interface in the coming
years? And which areas of healthcare will see the greatest
3
https://www.saludonnet.com/
disruption? We turn to these questions in the following
4
Figures based on Roland Berger research findings chapter.

6 | Focus
2 / More change is coming
INDUSTRY EXPERTS GIVE THEIR PREDICTIONS FOR THE NEXT FIVE YEARS

H
ow does the healthcare industry see platforms
developing in the period to 2025? To find out
what industry insiders think, we carried out Customer experience
a survey of more than 500 experts from around the
globe.5 This was the second in our series of major is the key success
industry surveys on the future of health, following on
from our 2019 study. We also carried out qualitative factor for platforms;
research into the top 100 healthcare platforms
worldwide.6 trust and health benefit
The results of our research were in many cases
surprising. In particular, the survey reveals how come next.
actors right across the healthcare industry have
changed their minds about the future of the market
since last year. We look at six of our key findings
below.

K E Y F I N D I N G S O F T H E 20 20 1. GROWTH EXPECTATIONS FOR DIGITAL

F U T U R E O F H E A LT H S U R V E Y HEALTH HAVE RISEN STRONGLY
Respondents in this year's Future of Health survey
1
Growth expectations for digital health anticipate that digital products and services will make
have risen strongly up as much as 12 percent of healthcare spending by
2025. This is up four percentage points from last year's
2
Platforms build on customer proximity survey. Industry experts have thus increased their
and relationships expectations of growth. If they are right, we calculate
that spending on digital health in 2025 will be EUR 57
3 Ownership of platforms is key billion in Germany (up EUR 19 billion on expectations
from last year's survey), EUR 232 billion in the European
4
Different types of platforms will Union as a whole (up EUR 77 billion) and EUR 979
emerge billion around the globe (up EUR 326 billion).7 B

5
Outpatient care will see the most 5
 urvey respondents came from Germany, Austria and Switzerland (44%), the
S
disruption rest of Europe (25%), Asia-Pacific (14%), Middle East (8%) and the rest of the
world (9%). They included industrial players (23%), healthcare providers (21%),
startups and tech companies (19%), health insurers (9%), political bodies (2%)
6 Everything is still to play for and other stakeholders (26%).
6
We selected the 100 platforms with the highest number of associated
stakeholders. The market leaders together count more than 300 million users.
7
This figure represents the mean of the experts' estimates.

Future of health 2 / The rise of healthcare platforms | 7

B: Digital products and services will grow to a market share of 12% within the healthcare sector by 2025
Expected share of digital products/services in healthcare

WHAT PERCENTAGES OF HEALTHCARE SPENDING DO YOU BELIEVE WILL BE SPENT ON DIGITAL PRODUCTS/
? SERVICES IN THE YEAR 2025?

12% MARKET SIZE

[EUR bn] Germany
~57

8% Europe

~232

2019 survey 2020 survey World

In 2025, 12% of total healthcare

spending will be spent on digital
~979
products/services1

1 Result calculated as weighted average of medians. Estimated to be higher than 2019 survey

Source: Roland Berger

Covid-19 is one of the many factors accelerating the expanded, both across borders and across the value chain,
development and acceptance of digital healthcare. The and many companies have launched new platform services.
pandemic has created new demand from health consumers, More than three-quarters of respondents in the survey
particularly for remote services, and greater acceptance believe that the pandemic will speed up the provision of
of such services in general. Digital infrastructure has digital healthcare by at least two years as the public adapts
developed accordingly, with regulations such as the Digital to contactless mechanisms for medical treatment. Digital
Healthcare Act (DVG) in Germany and similar legislation diagnostics and treatments will become increasingly
in other countries facilitating reimbursement of digital normal, with people only visiting their physician if it is
medical solutions by payors. Mergers and acquisitions have unavoidable. C

8 | Focus
C: Covid-19 is speeding up the development of digital healthcare
Impact of the pandemic on online health services

? BY HOW MANY YEARS WILL THE COVID-19 CRISIS ACCELERATE THE PROVISION OF DIGITAL HEALTHCARE?

50%
2-3 years
>78%
expect
provision of digital healthcare
to accelerate by at least 2

28% years due to Covid-19

>3 years

Source: Roland Berger

2. PLATFORMS BUILD ON CUSTOMER it seems, is the key criterion when it comes to health
PROXIMITY AND RELATIONSHIPS apps – something that players should keep in mind
Three-quarters of respondents believe that patients when developing platforms. Trust in the platform is the
will increasingly be the owners of their health data and number-two factor, and only then come health benefits
will decide who to grant access to, up 16 percent on in number-three position. D
last year's survey. For the industry this means that the
entry point to platform systems is critical. Surprisingly, 3. OWNERSHIP OF PLATFORMS IS KEY
customer experience is considered the number-one One of the key questions that everyone in the industry
success factor, not perceived health benefits. Usability, is asking is who will win the platform game? The survey

Future of health 2 / The rise of healthcare platforms | 9

D: Customer experience is the number-one success factor
Perceived success factors for healthcare platforms

WHAT ARE THE MOST IMPORTANT SUCCESS FACTORS FOR PLATFORMS TO ATTRACT AND RETAIN
? CUSTOMERS? (MULTIPLE ANSWERS POSSIBLE)

Customer experience
72%
Credibility/trust
67%
Perceived health benefit
64%
Data security
Customer
46%
experience (cx)
Range of services is an important
43% success factor for
all players
Size of community on platform
28%
Being the first to address customer
18%
Pre-existing customer relationship
17%

Source: Roland Berger

results offer some important insights into current startups, are expected to occupy different spaces in the
thinking in the industry. Respondents appear to believe market. E
that different types of players will "own" different types This leads to some important questions. For example,
of customers: Healthcare providers are best positioned how do tech companies pass customers on to providers
to access patients – individuals who already have health when they fall ill? Why is the industry not expected to
problems – while tech companies are better positioned play a key role in the prevention segment? And how can
when it comes to prevention, due to the enormous the fragmented provider sector manage the question of
amount of behavioral data on users that they possess. ownership? Here, the survey reveals a certain disconnect
Healthcare providers and tech players, including between how players see themselves and how others view

10 | Focus
E: Providers in best position to "own" patients
Preferred points of access for healthy individuals and patients

WHO IS THE PREFERRED PARTNER FOR PATIENTS WITH HEALTH PROBLEMS

? AND HEALTHY PEOPLE?

7% 7%
7% Pharma, Pharma,
Healthcare medtech, etc. medtech, etc.
providers
(inpatient/ 26% 10% 30%
hospital) Big tech players Startups/ Healthcare provider
(Google, grownups (inpatient/hospital)
Facebook, etc.)
16%
Healthcare
providers Healthy 10% Patients
(outpatient/ Big tech
doctor) individuals with health
(prevention) problems

14%
23% Health
21%
Health
Digital health
startups/
insurance 29%
Healthcare provider
insurance grownups (outpatient/doctor)

Source: Roland Berger

them. Around half of the health insurers in the survey see care platforms, fusing them to create a value-adding
themselves as being in the best position to own patients, meta-platform? What is clear is that whoever controls
that is, as the preferred provider for patients with actual the customer interface will be able to steer patients
health problems. But that view of insurers' importance towards particular providers, and will therefore enjoy a
is not shared by the rest of the expert group. significant competitive advantage.
Health insurers must decide on what their best
approach will be. Should they build their own platforms? 4. DIFFERENT TYPES OF PLATFORMS WILL
Or should they partner with tech companies for EMERGE
prevention-focused platforms and providers for acute- Today's healthcare platform landscape is highly

Future of health 2 / The rise of healthcare platforms | 11

F: Platforms specializing in specific services are expected to grow
Expected relevance of platforms

? WHAT ROLE WILL DIFFERENT PLATFORMS PLAY IN THE YEAR 2025?

57% Role of platform types

39%
38%
36%
34%
33%
30%
28%

Platforms for specific Indication-specific Consumer-oriented Integrated care networks,

services, e.g. platforms, e.g. for platforms initiated by e.g. Kaiser Permanente,
doctor's appointments, diabetes, cardiovascular technology-firms like Ping An, WeDoctor
drug delivery conditions Amazon and Apple

4 = Plays a major role 3 = Plays a medium to major role

Source: Roland Berger

12 | Focus
G: Coexistence of multiple platforms or oligopoly of platforms with individual focus
on services expected
Coexistence of platform models

WILL MULTIPLE PLATFORMS COEXIST OR WILL THERE BE ONE

? "WINNER TAKES ALL" PLATFORM?

Coexistence of specialized platforms

48% expected – Monopoly of one
Coexistence of platform provider very unlikely
multiple platforms Integration Healthcare providers and regulators
each focused on a
different service of specialized 48% in favor of multiple platforms with
Oligopoly of different services
solutions platforms that
dominate Big tech players and startups
different fields  believe there will be an oligopoly
of platforms

4%
Monopoly, one player integrates
the other platforms – "winner
takes all"

Source: Roland Berger

fragmented. It would be logical to expect a certain amount in specific indications (mainly horizontally integrated
of consolidation to take place over the coming years. platforms, as discussed in Chapter 1). At the same
Yet, contrary to expectations, respondents believe that time, this year's survey shows less of an expectation
platforms offering specific services are likely to continue that Big Tech players such as Google or Amazon will
to play a major role in 2025. It may also be that Europeans be part of the healthcare system in the same way that
prefer highly specialized, personalized services and insurance companies and hospitals are today. Even
would not accept the dominance of a single, government- specialized platforms can expand and/or collaborate,
monitored meta-platform, such as Tencent or WeChat. F e.g. by combining telemedicine and drug delivery. But
The survey shows, for example, that platforms experts foresee different extents of integration. They
offering appointments with physicians or drug delivery are, however, in agreement that it will not lead to a
will gain in importance, as will platforms specializing monopoly. G

Future of health 2 / The rise of healthcare platforms | 13

H: The healthcare platform landscape is highly fragmented
Level of integration and number of stakeholders in selected platforms worldwide1

Level of
integration

Inter- Daman Ping An

Helsenorge.no Good Doctor
connection e-Estonia
WeDoctor
of many AliHealth Sharecare
different
players2
Kaiser
Permanente
e-veseliba

Connecting DXY.cn
NHS Spine
patient,
doctor & ELGA
mySugr Ocean Health
pharmacy3 Systems
Kanta sundhed.dk
m.DOC United
Healthcare
Tianjin Weiyi DMP
Oscar Teladoc Health/ Chunyu
Livongo Yisheng
DoctorUna Tencent Trusted
Vidavo Doctor Hao Dai Fu
Connecting TeleClinic Samedi DoctoLib
patient & KRY
doctor4 Gnosco Meddy Ada Booking
Babylon
Clinic
Health
AbleTo
Gennev Iryo
Vezeeta Maven WebTeb
FutureDocs Fitbit
Shiatech
SPECIALIZED
Talkspace
Connections Pager PLATFORMS
for personal So-Young WITH LIMITED
use5 PatientsLikeMe REACH

1 5 10 50 100 200 300

Number of connected participants [m]

Europe China Middle East United States Argentina Australia Others, not part of the analysis

1 Disclaimer: Figures are indicative and a snapshot of August 2020, estimations are based on accessible online resources, but deviations are possible.
2 Health institutions, dentists, psychologists, etc. 3 Telemedicine, patient record, e-prescription 4 Telemedicine, patient record, engagement tool, booking
5 For private use of patients
Source: Roland Berger

14 | Focus
 In our analysis of the top 100 platforms, we grouped
companies by their number of stakeholders and level of
integration. The results were in line with the findings It will be essential to
of the survey. Over three-quarters either operate as
single-solution providers or connect fewer stakeholders integrate the online and
than meta-platforms; often, they are both horizontally
and vertically integrated in order to create increased the offline world, say

84%
customer value and reach. H
Another finding of the survey, and one that is of the
utmost importance for healthcare players' strategy,
is that it will be essential to integrate the online and
offline worlds. The idea here is to ensure a seamless
journey for patients and other healthcare consumers.
As many as 84 percent of respondents expect to see
growth of platforms that combine virtual and real-world of respondents.
services. For example, patients may choose to access a
video consultation via a diagnostic platform, but if this
is insufficient for a valid diagnosis they will need to be
transferred to a specialist for a physical examination.
Ensuring that this transition is smooth will be critical.
This integration of online and offline realms is
not widespread as yet, but we see signs of it emerging.
Where it does occur, it often originates in the online
world. For example, Tencent initially operated online,
and only later started connecting real physicians to
the network. Sweden-based provider of digital doctor
appointments KRY's merger with Helsa, which runs
physical health centers, is another example; the merger
of the two companies makes it possible to offer patients
a combination of online and offline treatments.
One possible future scenario is the development of
patient-centered healthcare built around collaborative
ecosystems with different entry points, depending upon
the individual's needs (prevention, diagnosis, treatment).
Users – both healthy individuals and those requiring
treatment – will be able to access a combination of analog
and digital services, from consultations and fitness
programs to physiotherapy sessions.

Future of health 2 / The rise of healthcare platforms | 15

I: Providers of outpatient services and physicians face the greatest disruption
Threat to business models of various stakeholders

? WHICH STAKEHOLDERS' BUSINESS MODELS WILL BE SIGNIFICANTLY DISRUPTED BY PLATFORMS?

Percentage of participants expecting that1 …

Healthcare providers
64%
(outpatient/doctor) …

Health insurers … 50%

Healthcare providers
47%
(inpatient/hospital) …

… will be disrupted by platforms

1 Disruption potential of other players: startups: 32%, pharma 29%, medtech: 24%, others: 4%
Source: Roland Berger

5. OUTPATIENT CARE WILL SEE THE MOST Thus, the same category of players have both the
DISRUPTION biggest chance of "owning" patients and the biggest
Healthcare providers today enjoy the best access to chance of being disrupted. A contradiction? Not
patients and are therefore in a strong position to necessarily. Both statements are true for the category as
succeed with a platform play. However, providers of a whole, but some providers will succeed, while others
outpatient services and physicians face the greatest will be swallowed up or displaced by bigger platforms
risk of disruption in terms of their business model (64 or structures.
percent of responses in the survey). Other players at The outpatient sector will form a particular battle
risk of disruption are insurance companies (50 percent arena as it represents the normal entry point for patients
of responses) and providers of inpatient or hospital into the healthcare system. Our qualitative research
care (47 percent). Less at risk are startups (32 percent), on the top 100 healthcare platforms worldwide backs
pharmaceutical companies (29 percent) and medtech this up. Currently, more than 60 percent of the top
companies (24 percent). I healthcare platforms connect patients and physicians,

16 | Focus
J: Platforms will play an important role in providing and organizing healthcare
Will the following statements hold true for 2025?

? DO YOU THINK THE FOLLOWING STATEMENTS WILL APPLY IN 2025? (YES/NO)

% change
to 2019
Platforms will steer patients to specific programs
84% +5%1

Payors will offer digital diagnoses and therapies, insured members will use them
77% +29%

Patients will be the owners of their health data and will decide whom to grant access
76% +16%

Big tech players like Google or Amazon will be part of the healthcare system like insurers and hospitals today
57% -5%

1 Question in 2019 survey focused on patient steering by health insurances

Source: Roland Berger

including areas such as patient records, data transfer, consumers will partly pay for digital health solutions;
online booking systems and telemedicine. By contrast, more than 60 percent of respondents think that private
larger networks that include hospitals, pharmacies, customers will make out-of-pocket payments for
insurance companies and other health institutions are additional services. One possible scenario is that health
often government supported. insurers will pay for most digital solutions but, due
Who will pay for the services offered by platform to the sheer amount of innovation, a larger portion of
solutions? More than 80 percent of respondents believe healthcare services than today will be paid for by patients
that health insurance companies are most likely out of pocket. J
to continue acting as payors, as is traditionally the
case. However, legislation such as Germany's Digital 6. EVERYTHING IS STILL TO PLAY FOR
Healthcare Act (DVG) means that digital health solutions Our final key finding should give industry players food for
will become an established part of the public health thought. Compared to last year's survey, our respondents
insurance system. At the same time, it is likely that this year are even more certain that platforms will be

Future of health 2 / The rise of healthcare platforms | 17

Respondents are not expecting a "winner takes all"
market. Everything is still to play for.

highly relevant in the future. Some 84 percent believe that healthcare platforms coexisting, each focused on specific
platforms will steer patients towards specific treatments, services, or an oligopoly of platforms, in which a small
therapies or disease management programs. All types of number of players offer services that cut across different
platforms are expected to grow in importance through medical conditions or fields. Fewer people than last year
2025, in a landscape characterized by a variety of digital expect the large consumer tech companies to dominate
platforms and both analog and digital services. the market. Rather, the consolidation might be driven
Notably, respondents are not expecting to see a from within the healthcare space. In any case, we will
"winner takes all" market. Everything is still to play for. likely see further consolidation in the period to 2025,
What is as yet unclear is whether we will see multiple with some players disappearing altogether.

18 | Focus
3/O
 ur recommendations
HEALTHCARE PLAYERS MUST PREPARE FOR THE NEXT NORMAL

A
s platformization begins to transform the Given the variety of trends in existence, each
healthcare sector, players of all types, be they potentially pulling the industry in a different direction,
health insurance companies or hospitals, players would be well advised to employ a scenario-based
pharmaceutical concerns or medtech startups, must strategic planning approach. This involves developing
carefully consider their response. The next normal, multiple scenarios and strategic options. It stimulates
when we have learned to control Covid-19, will see companies to take a step back from their familiar
the dramatic restructuring of the economic and social environment and more traditional ways of thinking,
order in which business and society have traditionally and to reflect creatively. In so doing it helps them re-
operated. How can healthcare players prepare for this conceptualize their vision of the future, identifying new
radical transformation? Here is what we recommend. opportunities, counteracting volatility and ensuring that
they are receptive to any upcoming changes.
Amazon, as one specific example, has already fully
embraced this principle. By partnering with the IT

#1 company Cerner, Amazon has gained access to health

data from 200 million patients. Similarly, in the United
FINE-TUNE YOUR TREND RADAR Kingdom it receives data from the National Health
Players must sharpen their ability to spot key trends, Service. This way Amazon will be able to develop its
such as those developments that will hit the industry next AI-driven Alexa into a voice-controlled health advisor
or have the biggest impact on their own business model. bringing its advice to individuals and families at home.
To do this they should fine-tune their "trend radar". It could also act as a decision-support tool for doctors
We identify two major trends in the healthcare and, thus, establish itself at the point of care.
landscape at present. First is the tendency towards the
integration of online and offline worlds. Companies
will need to ensure a smooth journey for healthcare
consumers across the digital and physical realms.
This was reflected in the survey, where almost all
#2
respondents predicted growth of platforms combining SELECT YOUR PLAYGROUND
virtual and real-world services, as discussed above. Having pinpointed the key trends shaping the healthcare
Second, players may initially become strong in one industry and identified which scenarios may play out
sector and later expand into upstream or downstream in the future, players need to define an appropriate
stages of the value chain. For example, a telemedicine strategy for their own business. The healthcare sector
provider may start out offering video consultation is a highly complex and fragmented industry with many
technology and then progress to employing physicians different stakeholders, markets, and different niches
to provide direct diagnostic services, ultimately within markets. It varies widely from country to country
developing into a "digital hospital". Likewise, an AI- and branch to branch. Companies may need to reinvent
based diagnostics platform may enter into cooperation themselves entirely in line with their new strategy. If
with a telemedicine provider and an online pharmacy they decide to create their own platform, they will
and start prescribing drugs. need to decide how it can integrate different solutions

Future of health 2 / The rise of healthcare platforms | 19

and connect many different users. If they decide not
to develop a platform themselves, they will need to
define their place in the platform ecosystem, potentially
#4
FIND YOUR ENTRY POINT
forming partnerships with other players. Finding the right entry point, or combination of entry
points, is essential. Companies need to devise a strategy
that offers solutions for both the sick and the healthy,
attracting customers and quickly achieving critical mass.

#3 Human beings pass through different life stages in

which they need to access health services: parenthood,
CHOOSE YOUR ROLE employment, aging, acute or chronic illness. To gain
A shift in strategy such as that described above may access to working individuals, some large tech companies
mean a player moving beyond its traditional core have established prevention centers in offices. Similarly,
business. That can bring new challenges. The company through its purchase of Fitbit, Google can access the user
must now assume a role that differs from its traditional data of people wanting to improve their fitness levels.
image, in other words, how it is perceived by the general A strategy that addresses both sick and healthy
public and other industry players. For example, a firm individuals must form part of a more general population
that is perceived by the market purely as a payor will be health strategy. By collecting data on healthy people,
fighting an uphill battle if it tries to position itself as a players can help them to stay healthy and at the same
high-quality healthcare provider. Our survey confirmed time potentially act with them to change their lifestyles,
this, revealing significant differences between the way avoiding chronic diseases (or at least delaying their
stakeholders see themselves and how they are seen by onset). With the right data, companies can divide up the
others. population and identify which segments may change
Players who wish to shift their role within the their fitness habits due to their higher risk of developing
healthcare industry need to ask themselves how chronic conditions. On this basis they can define the
they can influence how they are perceived by the right strategy.
market. They must review their own positioning from Healthcare players can theoretically enter the game at
a variety of perspectives and on this basis develop a any point in individuals' evolution from healthy to sick,
fitting strategy. One possible solution is to foster new and back to healthy – or, in the case of non-communicable
partnerships or broaden their key competencies by diseases, at any point in the journey to proper management
means of mergers and acquisitions. If they choose of the disease. But identifying precisely the right point
this strategy, they must make it a priority to remain at which to enter is today more challenging than ever.
credible in the eyes of the public and their potential Digitalization has empowered patients, giving them access
customers. to massive amounts of information about treatments and
One example of a company that has successfully therapies. Patients are becoming better educated as a
influenced the way it is perceived by the market is AXA in result, and the traditional asymmetry between patients
its operations in Mexico. By teaming up with a hospital and physicians is disappearing. Healthcare players must
group to build a new hospital, AXA acquired credibility bear in mind this new balance of power when seeking to
as a provider as well as as a payor. engage with their customers.

20 | Focus
Whatever your current role, be it insurer, hospital,
pharmaceutical company or medtech startup, it is
time to define your platform strategy. As yet, no clear
winner is visible. There is everything to play for.

#5 that incorporate other parts of their network. Strong

relationships with partners are essential for an efficient
STRENGTHEN YOUR COLLABORATIVE IQ healthcare ecosystem or "network of networks".
You do not need to do everything yourself. Players To successfully develop their networks, companies
need to expand their networks and form alliances with need to improve the skills required to fill partnerships
partners operating in adjacent parts of the healthcare with life. In other words, they must strengthen
value chain, that is to say, areas just upstream or their "collaborative IQ". In the past, companies built
downstream from themselves. Given the fragmentation partnerships with the aim of maximizing the benefits
of the market, access to a strong network of different for themselves; today, they need to establish a system
platforms will be a key success factor in the period to of cooperation in which all partners are winners. This
2025. Players need to rethink their own business or calls for a cultural change – a fundamentally different
platform model and build innovative business models way of thinking.

Future of health 2 / The rise of healthcare platforms | 21

Conclusion

Healthcare platforms are set to become part of the next normal,

acting as both gatekeeper and driver of future health markets. The
option for players of creating or joining a platform will change the
healthcare market beyond recognition, lowering entry barriers for
tech companies and startups, empowering providers and consumers,
and redefining roles for insurers. Sectors that are currently distinct –
payors, inpatient and outpatient care, services for healthy people
and the chronically ill, appointments, consultations, diagnosis and
drug prescription – will become increasingly integrated.

In the drive to ensure a seamless customer journey, it is likely that

different platforms will cooperate more and more closely with each
other. This may lead to the development of "platforms of platforms"
or "platform networks". Within this complex landscape, players that
succeed in owning the customer interface will be at an enormous
competitive advantage.

The message for healthcare players? Whatever your current role, be

it insurer, hospital, pharmaceutical company or medtech startup,
it is time to define your platform strategy. As yet, no clear winner
is visible. There is everything to play for.

22 | Focus
CREDITS AND COPYRIGHT

AUTHORS OUR GLOBAL

PHARMA & HEALTHCARE EXPERTS
PETER CHOUEIRI
Partner KAI BALDER
[email protected] United Kingdom

MORRIS HOSSEINI KOEN BESTEMAN

Partner Netherlands
[email protected]
PATRICK BIECHELER
THILO KALTENBACH Spain/Portugal/France
Partner
[email protected] MATHIAS BÜNTE
Switzerland
ULRICH KLEIPASS
Partner MICHAEL CARACACHE
[email protected] Middle East & North Africa

KARSTEN NEUMANN ROLAND FALB

Partner Austria
[email protected]
HANS NYCTELIUS
OLIVER RONG Nordics
Partner
[email protected] GEORGE REN
China

YOSHIHIRO SUWA
Southeast Asia
We welcome your questions,
comments and suggestions NAOKI TOKUMOTO
Japan
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