The Future of Competitive Strategy in Healthcare
From Volume to Value: Practical Steps for Real Transformation
The Strategy Shift We Can’t Ignore
For decades, healthcare rewarded volume—the number of prescriptions filled, procedures performed, or consultations billed. But this model is unsustainable. Rising costs, chronic disease burdens, and patient dissatisfaction demand a different competitive strategy: value-based healthcare (VBHC).
This is not an abstract idea. It’s happening now in pharmacies, hospitals, insurers, and pharma companies worldwide. And those who act early—especially in pharmacy retail—are positioning themselves for growth, trust, and market leadership.
Scientific and Pharmacological Foundation
Value = Outcomes ÷ Cost
Michael Porter’s formula remains the anchor:
Outcomes: improved HbA1c levels, controlled blood pressure, lower LDL cholesterol, fewer hospital readmissions.
Cost: the resources consumed in achieving those outcomes.
Pharmacological Relevance
Pharmacies drive adherence: Studies show that pharmacist-led interventions can reduce hospital admissions by 20–30% in chronic disease management.
Outcomes-based pharma contracts: Oncology and rare disease therapies now link reimbursement to real patient outcomes, not doses sold.
Prevention saves lives and costs: Vaccinations, statins, and diabetes screening are measurable interventions where pharmacology delivers long-term value.
Positive Practice in Pharmacy Retail
Pharmacy retail is uniquely placed to lead this transition from transactions to transformation. Here’s how:
1. Medication Adherence as a Competitive Edge
Instead of counting boxes sold, successful pharmacies track % of patients adherent at 90 days. Tools include:
One-to-one counseling sessions.
Case Example: CVS Health’s adherence programs generated $2.7 billion in medical cost savings in 2022 by reducing hospitalizations.
2. Preventive Pharmacology in Action
Pharmacies become health hubs offering:
Lifestyle supplements aligned with clinical guidelines.
Case Example: In Saudi Arabia, pharmacy-based vaccination programs under Vision 2030 reduced the burden on primary care and improved coverage.
3. Collaborative Care Agreements
Pharmacists co-manage patients with physicians:
Adjusting hypertension therapy.
Monitoring diabetes HbA1c.
Optimizing asthma inhaler use.
Real Practice: In the U.S., collaborative practice agreements (CPAs) allow pharmacists to titrate medications, improving outcomes and cutting costs.
4. Digital Health and Data Integration
The future pharmacy will be digitally connected:
Linking pharmacy records with insurer and hospital data.
Measuring patient-reported outcomes (e.g., pain control, mobility).
AI tools predicting non-adherence before it happens.
Positive Example: Walgreens’ partnership with Microsoft Cloud integrates digital health data for chronic disease patients.
Developmental Opportunities
Patient Engagement: Empower patients as partners, not passive recipients. Counseling and digital apps increase accountability.
New Revenue Models: Pharmacies earn from clinical services, not just dispensing.
ESG Advantage: Delivering real patient outcomes contributes to social impact metrics—increasing attractiveness to global investors.
Professional Business Advice for Pharmacy Leaders
Redefine KPIs → Measure adherence rates, clinical outcomes, patient satisfaction—not sales volume.
Invest in Digital Health → Adopt AI-driven adherence tools, cloud integration, and mobile engagement platforms.
Build Partnerships → Work with insurers, hospitals, and tech firms to co-create value-based programs.
Train Pharmacists → Clinical outcomes management, not just dispensing.
Start Small, Scale Fast → Pilot outcome-based projects (e.g., diabetes management) and expand once proven.
Conclusion: The Future is Already Here
Healthcare’s competitive strategy has changed forever. Pharmacies, pharma companies, and insurers that adopt value-based models will not only survive—they will lead, grow, and earn public trust.
Those who cling to volume-based practices will face declining margins, regulatory pressure, and patient disengagement.
As Peter Drucker warned: “The best way to predict the future is to create it.” In healthcare, that future is value-based, patient-centered, and pharmacy-led.
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References
Porter, M.E., & Teisberg, E.O. Redefining Health Care: Creating Value-Based Competition on Results. Harvard Business Press, 2006.
McKinsey & Company. The Future of Value-Based Healthcare. 2022.
WHO. Adherence to Long-Term Therapies: Evidence for Action. Updated 2022.
American Pharmacists Association (APhA). Medication Therapy Management: Improving Outcomes, Reducing Costs. 2023.
Saudi Vision 2030. Healthcare Transformation Program.
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