The challenges of delivering and demonstrating value in under-pressure markets.
Despite some national differences, diagnostics providers around the world face common competitive challenges and margin pressures, while struggling to demonstrate the value they bring to healthcare systems. To avoid commoditization, they should play a more integral role in care pathways and gain greater recognition for their vital contribution to improving patient outcomes and cutting overall treatment costs.
Through our extensive experience in this market, and conversations with a number of the leading players, we have identified four key industry challenges:
Diagnostics companies are addressing these challenges by adopting the following strategies:
1. Consolidation: opening the door to scale economies and synergies
2. Targeting new contracts and public sector outsourcing to improve performance and raise volumes
3. Diversification: creating a one-stop imaging and laboratories service, specializing and developing new income streams
4. Rethinking communications and customer experience
5. Reducing headcount
But mere survival is not enough, we believe more radical change can bring competitive advantage.
In this paper, we argue that a tremendous opportunity exists to shift the industry's perception from 'white label' third party supplier, to a 'premium brand' contributor to better healthcare, enhancing value to both owners and potential investors.