Health Industry Plans New Business Models for 2014 - Health Minute for May 2, 2013

May 2, 2013 8:15 AM ET
Press Release

The countdown to 2014 continues for the health industry. That’s when the Affordable Care Act kicks in with full force. Today, the industry is in a state of creative chaos as it ramps up to next year’s radically changed healthcare landscape. Creative, because new, innovative solutions are being put into action. From technology that manages electronic medical records, EMRs, to business models like accountable care organizations that link hospitals, doctors, and insurance, ACOs, the health industry is alive with new ideas embodied in new acronyms. Chaos, because no one seems quite sure what the right models for future success should look like. The stakes are high. The U.S. spends an estimated $2 trillion annually on healthcare, over 17 percent of its GDP, more than any other industrialized country.

The Affordable Care Act aims to make American healthcare less expensive and more accessible. How this ideal is to play out in reality is the bet companies are making today for profits tomorrow. At this year’s annual gatherings of health professionals, the impact of the Affordable Care Act on the business of health is the main subject of discussion.

The just-concluded Biotechnology Information Organization’s International Convention, which had a theme of “Connect. Partner. Innovate,” featured speakers from big players like Eli Lilly, GlaxoSmithKline, Abbott, Roche, and Quest who discussed such topics as the use of big data, the sharing of science while maintaining competition in developing drugs, multi-party and cross-border patent issues, strategies for early-stage innovation, and winning venture strategies. And this month, the TriZetto Corporation will sponsor a conference that will bring together for the first time health plans, third-party health insurance administrators, health systems, and physician practices to collaborate on strategies to increase the efficiency and effectiveness of the business of healthcare. The bottom line: the health industry is changing business models as rapidly as the practice of medicine itself is changing—and that’s fast, indeed.

I’m John Howell for 3BL Media.

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