The Power—or Threat—of Vertical Integration in Healthcare

Posted by Jacob Golbitz on Apr 10, 2018 5:24:25 PM

How CVS Health’s Performance Based Pharmacy Network Demonstrates its Competitive Strategy

In March 2018, CVS Health has introduced a ‘performance based pharmacy network,’ comprised of 30,000 CVS and Walgreens and approximately 10,000 other retail pharmacies nationwide. Mirroring the value-based model to incentivize pharmacies to help patients adhere to prescription regimens, the new network has the potential to control costs and improve the quality of care through increased access and convenience. In addition to addressing some of healthcare’s most pressing challenges, CVS Heath’s activities highlight how vertical integration is securing its market position and demonstrates how this strategy could be threatening to payers.

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Topics: New Market Entry, Healthcare, Merger and Acquisition, Insurers

How CVS Health’s Performance-Based Pharmacy is Positioned to Improve Cost and Quality across the Healthcare Continuum

Posted by Jacob Golbitz on Apr 6, 2018 12:23:26 PM

CVS Health issued a press release in October 2017 announcing the launch of the nation’s first “performance-based pharmacy network” in March 2018. The network will comprise approximately 30,000 retail pharmacies that currently work with Caremark, CVS Health’s Pharmacy Benefits Manager (PBM). Most of these stores will be CVS or Walgreens locations, but the network will also include up to 10,000 independently owned pharmacies.

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Topics: New Market Entry, Healthcare, Competitive Strategy, Diversification, Insurers

How Distributors Can Navigate the Fragmentation of Vaccine Administration

Posted by Laura Ruth on Apr 3, 2018 9:15:08 AM

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Topics: Market Analysis, New Market Entry, Healthcare, Life Sciences, Competitive Strategy, new entrants

Walmart’s Potential Acquisition of Humana: Competitive Strategy Implications for the U.S. Healthcare Industry

Posted by Ken Sawka on Mar 30, 2018 1:28:34 PM

 

I loathe the pervasive, trite metaphor that compares competitive strategy to the game of chess.  However, recent reports that Walmart is in discussions to acquire health insurer Humana can only be explained as a game of three-dimensional chess.  Should this deal go through – and, to be sure, it is a long way from happening – it satisfies three competitive strategy objectives for Walmart: responding to CVS Health, blocking Amazon and improving access to new customer segments.

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Topics: Competitive Intelligence, Healthcare, Merger and Acquisition, Competitive Strategy

An Uphill Battle for Biosimilar Adoption in the U.S.

Posted by Varun Naik on Feb 26, 2018 6:00:23 PM

Biosimilars were expected to spark competition and lower prices for branded biologics, but this potential has still been unfulfilled. The U.S. health industry has been relatively slow to adopt biosimilars due to a combination of complex market access tactics employed by branded biologics manufacturers, on-going patent litigation, lack of interchangeability, and a general lack of awareness and acceptance of biosimilars. To date, the FDA has approved nine biosimilars; however, only three biosimilars have launched. The current biosimilars landscape is in stark contrast to the generics market where payers and pharmacy benefit managers promote these cheaper alternatives to reduce healthcare costs.

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Topics: Market Analysis, Pharma, Healthcare, Pharmaceuticals

Managing Regulatory and Political Risk

Posted by Robert Flynn on Nov 21, 2017 3:38:26 PM

In our paper The Global Economy’s New Frontiers, my colleague Nathaniel Emmons and I argue that when investing in emerging economies, companies can realize high returns but only if the risks are successfully managed. Transnational mining companies operating in Zimbabwe, for instance, are in crisis management mode following this month’s coup, impeachment of President Mugabe, and transfer of power to yet another strong-man. Not an unanticipated series of events given the political instability experienced in recent years, and something that needs intense effort to navigate.

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Topics: Consumer Goods, Healthcare, Merger and Acquisition, Competitive Strategy, Early Warning

What’s Hindering the Broad Adoption of Value-Based Care?

Posted by Jacob Golbitz on Nov 21, 2017 12:51:51 PM

The public conversation about health care in this country may be driven by politics -- something we were reminded of last week when the Trump administration appeared to waffle on its latest attempt to undo the ACA. Beyond the political conversation, however, we find that professionals in payer and provider organizations are more focused on deeper layers of policy, technology, access to care and reimbursement. Those on the business end of the discussion are addressing key trends that are likely to continue regardless of the political discourse, whatever the current political climate.

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Topics: Healthcare

CVS – Aetna: The Power of Strategic Competitive Analysis

Posted by Robert Flynn on Oct 27, 2017 2:46:39 PM

The Wall Street Journal and other sources revealed yesterday that pharmacy operator CVS Health Corporation has made an offer to acquire No. 3 health insurer Aetna Inc.  Wouldn’t it have been rewarding to have known the probability of such an acquisition?  Wouldn’t executives of Walgreens and Express Scripts or United Health Group and Anthem have benefited from an evaluation that showed the rationale for such an acquisition? Fuld + Company analysis produced in June 2017 did precisely that. Anticipating just such a move four months ago demonstrates of the power of competitive strategy.

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Topics: Competitive Intelligence, War Games, Early Warning Monitoring, Healthcare, Competitive Strategy

Injecting a new Healthcare Model: The Pharmacist-Physician Team

Posted by Laura Ruth on Aug 1, 2017 9:16:59 AM

With less than three years until the re-evaluation of HealthyPeople2020 Immunization targets, Benjamin Blumi, Senior Vice President of the American Pharmacists Association (APhA) Foundation, and his colleagues reported a dramatic breakthrough: in a study run from the fall of 2016 through spring of 2016, the number of pharmacist-administered adult vaccinations increased by more than 40 percent.  A significant contributor to this success was Project IMPACT (IMProve American Communities Together), which features real time, bidirectional immunization information systems (IIS). The full breadth of this success, however, lies not exclusively with technology but with the adept interaction between information systems and patient-care processes.

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Topics: Healthcare, Pharmaceuticals

Transparency into Drug Pricing: Can it help with the high drug costs?

Posted by Malini Solanki on Jul 27, 2017 3:48:16 PM

Drug pricing became a topic of common and passionate interest in 2015 when Martin Shkreli, then CEO of Turing Pharmaceuticals, dramatically increased the price of a single Daraprim tablet - from $13.50 to $750.00, the price of an average lunch to that of a large household appliance. The interest intensified in 2016, when Mylan increased the cost of the EpiPen by 400 percent. Public outcry was intense and politicians were forced to act, holding hearings that are only now rivaled by probes into Russian election interference.

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Topics: Healthcare, Competitive Strategy, Pharmaceuticals

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