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August 18, 2016
Value Innovators move toward a single integrated offering
By: Jeff Elton Ph.D.

Value Innovators are developing expertise in using digital infrastructure to integrate drugs, devices and services with clinical processes.

Companies using the Value Innovators model have formally accepted that the healthcare system is shifting to value and, rather than waiting for the entire market to complete this transition, they are going to be the “better operator” for this future state today, actively shaping its course and pace.

While Around-the-Patient Innovators offer digital clinical and engagement services complementing the therapeutics or devices they make, Value Innovators have moved further toward a pure services approach, improving patient and clinical outcomes on a broader scale.


What is the Value Innovator business model?

Value Innovators recognize that they are no longer solely therapeutics or device companies. Instead, they deliver value through their ability to close gaps and remediate deficiencies in legacy healthcare models by:

  • Integrating across care settings with technologies that bridge the divide between physicians and patients.

  • Integrating interventional technologies, such as medicines and devices, with monitoring and engagement tools.

  • Providing solutions that fill critical gaps that have, until now, thwarted efforts to advance value even when this was attempted with the most sophisticated therapeutics.

Differentiating factors

These companies require R&D capabilities comparable to the innovative medicines companies, but equally advanced medical affairs or evidence-based medicine groups that can substantiate value. They are analytics-centric and driven—requiring real-world insights to define their services, to inform their contracting and risk models, and to act as a new “language” for their health authority and provider systems interactions.

In the current climate, we find many of these companies collaborating with other parties in the ecosystem—with device manufacturers, therapeutics companies, digital disruptors, service providers and data analytics players—all with the aim of creating and supplying superior services to patients and risk-bearing health systems. In short, these organizations are accelerating their evolution into integrated services organizations and are focused on delivering outcomes.


Succeeding as a Value Innovator

The sicker the patients, the more chronic the disease and the greater the cost burden the disease places on the health system, the higher the likelihood that a value-based economic model can be successfully defined. But these are early days, and many companies that aspire to implement this model are still at the pilot stage.

To successfully show a value proposition to payer and health systems, organizations must overcome three barriers:

  • Transitioning to a Value Innovator model requires leadership support of a full impact assessment.

  • Accessing real-world clinical data, on an ongoing basis, must be done within specific legal frameworks and technical protocols.

  • For many conditions, value-based innovation requires a longer-term horizon for evaluating returns and the multi-year services contract must be seen as an investment.

Value Innovators are prepared to transform from product and product-centric companies to a focus on services that improve the health of populations and the performance of health systems. Their challenge will be overcoming their own past success as great product and device marketers, and instead see themselves as distinctive partners and service providers at scale—focused on integrating multiple solutions to drive measureable and ever improving value for patients and the health systems.

In our next post, we’ll describe the fourth and final of these new models featured in Healthcare Disrupted—New Health Digitals.

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