The Healthcare industry is expected to reach $10 trillion by 2022, growing at a CAGR of 5.4%. There are several key factors leading to this rapid growth.

Life expectancy is increasing with people in the age-bracket of 65+ now representing almost 11% of the global population. The BRIC nations, representing over 50% of the world’s population only some 14% of their population is over 60. This compares to higher over 65+ rates of 22% in the US and 26% in the EU.

Non communicable diseases, such as cancer and heart disease, are on the rise. The instance of diseases such as obesity and diabetes are increasingly prevalent in western countries including the US, UK and Germany. This translates into significant and growing health spend as a percentage of GDP in western counties and highlights the scale of a worsening problem. 

Many countries are experiencing Health Budget overruns with health services in countries now stretched to the point of insufficient bed numbers, high patient/trolley numbers, patient backlogs, and ailing infrastructure. The private sector has now become a release valve for the public sector.

Specialist equipment and drugs can also be quite expensive (given R&D costs) in markets dominated by only a few players and, in some cases, single suppliers. Some key vaccines, for example, are produced by only one company.  This dependency on critical suppliers, their key ingredients/technologies and complex supply chains can leave buyers exposed both to significant cost and risks.

The role of The Clearview Group

There is a need to shift the focus from sick care to health care. Adapting to these changing consumer needs, demands and expectations will require a shift to value based outcomes from care. This will drive an entirely different approach to innovation and the nature of contracts and performance relationships with suppliers. 

Using new care delivery models to improve access and affordability, including virtual or online health, is already emerging and challenging the traditional model of care. Investment in technologies is required. Investing in digital innovations including blockchain, cloud-based computing, cloud-based SaaS, virtual reality, AI, robotics, RPA, IOT, virtual health will deliver a return and support the pressures of growing demand.   

While technology investment is crucial and will deliver operational efficiencies, compliance, and improved insights and intelligence, and staffing represents up to 70% of a hospitals cost. Recruiting, developing and retaining top talent will play a vital role. 

Procurement will need to be engaged at the highest levels and shaping the path to improved health.

Clearview was engaged by a national health service’s procurement department to support their corporate procurement planning across the health sector. With an annual spend of €3.3 billion across 4,000+ entities – they are the largest procurer in the state. Our objective was to improve compliance and increase visibility and control over the health sourcing pipeline, enabling category planning and category management. In a related programme our team also designed and delivered an 8-day upskilling certificate in public and strategic procurement to 70+ members of the health service procurement team

With another health provider we manage their procurement function during the rollout of a new care model comprising care clinics and an acute hospital. We are managing the sourcing programme for launch, building the procurement infrastructure, and implementing and managing the supply chain with category management and SRM models, including SeeR.

2019 Global health care outlook

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