Healthcare and the Pharmaceutical Industry as a Business Model Essay Sample

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From the video, assess how regulations in the U.S. impact the claims and facts presented in this video. Hypothesize where you think the biggest opportunity will be for the pharmaceutical companies. By 2020 the pharmaceutical market is anticipated to more than double to US$1.3 trillion, with the E7 countries — Brazil, China, India, Indonesia, Mexico, Russia and Turkey — accounting around for one fifth of global pharmaceutical sales. Further, incidence of chronic conditions in the developing world will increasingly resemble those of the developed world. Pharma by 2020 indicates that the current pharmaceutical industry business model is both economically unsustainable and operationally incapable of acting quickly enough to produce the types of innovative treatments demanded by global markets. In order to make the most of these future growth opportunities, the industry must fundamentally change the way it operates.

Some of the major changes PwC anticipates for the industry are: * Health care will shift in focus from treatment to prevention. * Pharmaceutical companies will provide total health care packages. * The current linear phase research & development process will give way to in-life testing and live licensing, in collaboration with regulators and health care providers. * The traditional blockbuster sales model will disappear. * The supply chain function will become revenue generating as it becomes integral to the health care package and enables access to new channels. * More sophisticated direct-to-consumer distribution channels will diminish the role of wholesalers. Marketing the future, the third in the series discusses the key forces reshaping the pharmaceutical marketplace, including the growing power of healthcare payers, providers and patients, and the changes required to create a marketing and sales model that is fit for the 21st century.

Challenging business models, the fourth in the Pharma 2020 series, this report explains why Pharma’s fully integrated business models may not be the best option for the pharma industry in 2020 and why more creative collaboration models may be more attractive. The paper also evaluates the advantages and disadvantages of the alternative business models and how each stands up against the challenges facing the industry.

Taxing times ahead, the fifth in the series focuses on the industry’s opportunities and challenges from a tax perspective. It discusses how the political, economic, scientific and social trends currently shaping the commercial environment, together with the development of new, more collaborative business models, will exert increasing pressure on effective tax rates within the industry. It also shows how companies can adapt their tax planning to support the provision of outcomes-based healthcare and remain competitive.

The vision, the first in the series highlights a number of issues that will have a major bearing on the industry over the next 11 years. The publication outlines the changes we believe will best help pharmaceutical companies realize the potential the future holds to enhance the value they provide to shareholders and society alike.

Supplying the future — Which path do we take?

How pharma companies will have to develop different supply chain models for different product types and patient segments, learn to use their supply chains as a means of market differentiation and source of economic value, and recognize the key role information will play flowing upstream to drive the downstream flow of products and services.

Identify and describe at least three of the most difficult issues facing health care in the United States today.
Three of the most difficult issues facing health care in the United States today are the uninsured and the disenfranchised, the future of the pharmaceutical industry and the shortage of health care personnel.

According to Williams and Torrens (2010), there are an estimated 50 million people which includes children that are uninsured. The lack of access to care leads to the compromise of the quality of care, especially for the uninsured. A recent study of the uninsured has shown that they receive only about half as much care as people who are continuously insured. Several studies have shown that when they have a serious disease the diagnosis is not received promptly, nor do they get a more innovative and expensive treatment, according to Slutsky (2007), The pharmaceutical industry issues are endless. As much as the government tries to contain and develop the guidelines for the production of what can improve and extend life lines the market controls pricing, which varies internationally. Of the underinsured, there is the Medicare beneficiaries who cannot afford prescription drugs or long term care services due to lack of coverage. The more innovative and experimental drugs are too expensive and not covered by Medicare or Medicaid.

One of the major challenges that health care system faces in the role of General practitioners and attracting students for residency in this field. There is a major shortage of nurses and primary physicians. Ironically, there are not enough slots for residency programs due to cut backs made by Medicare. The challenge is attracting, training, motivating and retaining personnel. Indentify and describe three ways that technology impacts health care. Three ways that technology impacts health care are 1) Technology promotes more efficient and effective services, 2) Technology can improve the nation’s health and outcomes, and 3) Technology can improve health care services.

Technology promotes more efficient and effective services which impacts prevention. Technology enhances clinical capabilities within the medical field and is instrumental in the diagnosis, intervention and prevention of diseases. Taking a patients history helps a doctor diagnosis and influence the patient work up process. Why? Genetics; Because of technology doctors now know that genetics play a critical part in possibly passing on diseases from one generation to another, (Geisler, 2008). Another example would be vaccinations. The newest vaccines prevent certain diseases which lead to cancers: e.g. HPV-the human papillomavirus , which can lead to cervical cancer.

Technology can improve the nation’s health and outcomes, by increasing the public’s expectations and enhancing awareness of the new age of medicine and provisions for better care. Early disease and improved testing has played a major role in the longevity of life. Doctor are able to use x-rays, MRI’s and CT Scans to better detect and diagnose problems before they become life threatening. According to Torrens (2010) due to such advanced technological capabilities the life expectancy is 75-85 years old in this country and continues to rise every year. Technology can improve health care services. Health information systems, medical diagnostic and research equipment keep advancing and/or evolving such that test can be taken the same day and diagnosis can be made more promptly. A routine blood test and lab work can reveal blood deficiencies, certain cancers, diabetes, and heart conditions which leads the doctor to be able to determine what type of service the patient is need of.

Health care at the international level will impact the United States health care system according to Torrens (2010), the wealthier the nation, it will be the expectation of the more poor nations that the technology is shared. An example of these advancements is, the drugs developed to deal with the AIDS epidemic. When chemotherapy drugs, pain killers and mood enhancers are proven to be effective, then more nations are encouraged to purchase these drugs, which can improve health and economic well-being.

The United States is already viewed as the most powerful nation. Enhancing health care will only have a positive impact at the international level and drive the market up. The nation puts a lot of time and research into pharmaceutical products and diagnostic equipment to improve early detection and increase the quality of United States citizens. If the United States could find a way to influence light to all other nations.

Describe the ethical challenges we face in the future in health services as it relates to health care reform in the United States.
The ethical challenges we face in the future in health services as it relates to health care reform in the United States are: 1) The rising cost of health care, 2) the equity of distribution of resources, and 3) respect for human rights.

The Ethical issues in organization of services create financial barriers. This issue conflicts with the oath of “do no harm”. It does not reflect that every human beings life has equal value. This is inappropriate and does not equate to or demonstrate what outlines ethical behavior. The equity of distribution of resources is to be considered when the underuse of health care capabilities occur. In this instance, patients do not receive medically necessary care from institutions, or when proven health care practices are not followed, e.g., when people who have cancer are not given the more expensive drug that has greater results due to their uninsured status. According to Geisler (2008), 90, 000 Americans or more will die each year because they did not receive care for conditions such as diabetes, high blood pressure or heart disease. The quality of care should never be compromised when care is available, even though it is not affordable for some and they do have access to care but are turned away and in the country that is suppose to be and have the best most advance healthcare in the world that is somehow a travesty of the worse most unethical kind, truly shameful to any professional that participates in that kind of “health care.”

In spite of the increase in the number of physicians over the last four decade, it has been determined that there is a shortage of physicians within the United States; facts supporting this theory will be explored. The shortage within the medical industries is not only apparent among the physicians; it is evident in the nursing field. Identification of the factors contributing to the shortage within both industries will be discussed. The physicians and nursing staff are instrumental in providing health care to the public. Public health care professionals and health service administrators fulfill essential positions needed to provide health care to the public; their roles in the health care system will be identified and discussed.. There has been an increase in the number of physicians in the last four decades; the increase represented a 218 percent increase (Williams, & Torrens, 2010). In spite of the increase in the number of physicians and the prediction of a surplus, the focus and physician requirement for the public has shifted. The shift in medical practice structure from an efficient formation has put pressure on the demand for more physicians. Physicians and patients are preferring choice over efficiency. The three reasons that there may be a physician shortage rather than a surplus in the United States is that physicians favor a more “controllable lifestyle”, the proportion of first year medical students who are women reached parity to male students, and the unusual growth in population requiring physicians (Williams, & Torrens, 2010). The physician’s preference now favor a more “controlled lifestyle”(Williams, & Torrens, 2010).

The younger doctors that are entering the workforce seek a more controllable lifestyle. This lifestyle would include weekends off, limit on the number of hours worked weekly, and other amenities that would require time away from work. This lifestyle preference would have an impact on the number of required physicians. These preferences will reduce the amount of time available for patient care. This reduction in availability would put more demand on the required supply of physicians. The low physicians to patient ratio is an indicator of the shortage of physicians. “In the year 2000, the portion of first-year medical students who were women reached parity with men”(Williams, & Torrens, 2010, p. 270). This shift in demographics impacted the required physicians needed to provide health care. Women typically take more time away from work because of their responsibility as caregiver to their family. This time away from the practice may emphasize the need for more physicians to compensate for absentee physicians. The unusual growth in population would point to the fact that there are more people requiring health care than physicians available to provide the service. The immigration population has impacted the population within the United States.

The increase in population has amplified the need to have more available physicians. This population trend is picking up its momentum and putting pressure on the need for more physicians. The population growth is winning the race against available physicians. It occurs to me that since there are so many people that have no insurance and unless there is a change in that situation, the best thing for all of us when we consider how many Americans are on medication, suffer from obesity, chronic illnesses and the list goes on, that the areas of healthcare that have the best potential for growth and that can help the greatest number of people that are not critically ill will be the prevention of illness and those things that help an individual obtain optimum health. If more people stop smoking and drinking to much, get kids off all the meds for these so called umbrella illnesses and adults as well, and all the people that suffer from chronic illness, then we all stand a much greater chance of living a more active and productive healthy life to the end of our life. Then the researchers can focus on the things that are important to find cures for such as HIV/Aids, Cancer if they haven’t already, and other life robbing illnesses. Diets should not include processed foods and foods full of salt and sugar, but whole. Maybe doctors will become doctors again because they want to save lives not treat chronic illness that the really can’t cure. Then we can all live much happier, healthier and more productive lives and enjoy our lives and enjoy our children and loved ones disease free, healthy and active lives.


December 10, 2010 Frank, Ryan. 5 Ways Technology Has Changed the Medical Field. Retrieved from (2008). Williams, S. J., & Torrens, P. R. (Eds.). Introduction to health services: 2010 custom edition (7th ed.). New York: Cengage Delmar Learning. (January 26, 2007)Jean R. Slutsky. Moving Closer to a Rapid-Learning Health Care System. Retrieved December 11, 2010 from http://health, Web Exclusive pp. w122-w124

December 9, 2010 Geisler, Elie, (Last edited date). The Role of Technology in Health Care Delivery. Retrieved from http:// (2004). Health care administrator. Brewer, M Retrieved from (2011). 21th century nurse shortage. Long, B. Retrieved from (2008). Introduction to health service: 2010 Williams, S. J., &Torrents, P. R. (Eds.). Custom edition (7th ed.) New York: Cengage Delmar Learning. |

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