What

Big Hospitals Want

Big Pharma to Realize

E X C L U S I V E R E P O R T

At about US$300 billion a year, the global pharmaceuticals

industry wields a huge amount of influence in the

healthcare sector. Along with medical institutions and

hospitals, big pharma is a dominant force that could make

a big difference.

In a recent finding by IMS Health, global medicine

spending will pass the $1 Trillion mark in 2014. It was

further revealed that: “in absolute terms, global spending

on prescription medicines will increase by $205-$235Bn in

the five years to 2017, reaching over $1 trillion. The level

of increase is comparable to the $234Bn by which

spending increased in the previous five year period.”

Despite the optimism, it is interesting to note that in the

developed world, the picture is more complicated than a

simple growth story. According to Gerald Clarke, in a recent

article published on Pharma IQ, “factors increasing

spending on pharmaceuticals include the appearance of

new drugs for various diseases such as cancer and an

increasingly aging population.” The United States’

Affordable Care Act could potentially also increase pharma

spending as previously uninsured people gain coverage.

However some of this trend is counteracted by

blockbusters dropping off patent, causing many to move to

cheaper generics. Additionally, the global financial crisis

has caused many governments to look for areas to cut

spending and many of them are looking towards their

medicines spend.

“China, more than any other country, will be a main driver

of growth with a CAGR of 14-17% until 2017. The country

aims to have total healthcare coverage of its 1.35 billion

population by the year 2020 which could mean over $180

billion in growth over the 4 year period. In countries such

as China, it is likely to be the increased take-up of generic

medicines which will drive growth,” notes Mr. Clarke.

There is a role and

responsibility for pharma

companies to become

partners in the efforts to

improve hospitals and

healthcare delivery. This

must be approached in a

very cautious manner to

ensure that the inherent

conflicts are managed

properly.

Steven Thompson, CEO

Johns Hopkins Medicine

International

“

”

What Big Hospitals Want Big Pharma to Realize

Putting market demands aside, the world’s top hospitals

believe that pharmaceutical companies can also expand

their role beyond their current status to help improve

patient safety and hospital efficiency.

According to Mr. Steven Thompson, CEO of Johns Hopkins

Medicine International, the No. 1 hospital in the world

(based on annual U.S. News & World Report Best Hospitals

rankings), “there is a role and responsibility for pharma

companies to become partners in the efforts to improve

hospitals and healthcare delivery. This must be

approached in a very cautious manner to ensure that the

inherent conflicts are managed properly. There is

significant knowledge and ability in these organizations

that can create mutually beneficial improvements to

patient outcomes and health status.”

Dr. Krit Pongpirul, Quality Advisor at Bumrungrad

International Hospital, Thailand’s best-known facility for

hospital tourism agrees: “Pharma companies can be more

proactive in terms of promoting patient safety. A good

starting point is package design that can reduce

medication errors.”

Pharma companies can be

more proactive in terms of

promoting patient safety. A

good starting point is

package design that can

reduce medication errors.

Dr. Krit Pongpirul

Quality Advisor

Bumrungrad International

Hospital

“

”

What Big Hospitals Want Big Pharma to Realize

While pharma companies have traditionally been product-

based, Mr. Mark Cheong, Cluster Manager of University of

Melaya Specialist Centre believes they could potentially

shift “to providing comprehensive solutions and services

related to a particular therapeutic area.”

He further adds: “We’re seeing diagnostic companies and

dialysate-producing companies head towards that direction

and becoming the subject matter experts in managing

patients in their respective therapeutic areas. Pharma

companies could possibly add value to hospitals and other

healthcare organizations by collaborating and providing

expertise in setting up healthcare services centred on their

pharmaceutical product. The combination of expertise and

knowledge could result in higher standards of care, more

judicious and effective use of pharmaceuticals and better

outcomes for patients.”

A rather sensible approach was offered by Mr. Michael

Wong, CEO of Pantai Hospital: “Western pharma

companies need to stop charging first world price for

developing countries. By sheer number of patients alone,

they will still make the same amount of profit. Right now,

they only reach those who can afford it.”

Western pharma

companies need to stop

charging first world price

for developing countries.

By sheer number of

patients alone, they will

still make the same

amount of profit. Right

now, they only reach those

who can afford it.

Michael Wong, CEO

Pantai Hospital

“

”

Learn more about Improving Efficiencies,

Minimizing Wastage and Managing Costs while

Improving Patient Safety and Healthcare

Outcomes at the 3rd Annual Hospital Efficiency

& Quality Asia Summit 2014. To find out more,

visit www.hospitalefficiencyquality-asia.com

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Reference: Pharma IQ: Global Medicine Spending to Pass $1 Trillion in 2014 - http://www.pharma-iq.com/market-access/articles/global-medicine-spending-to-pass-1-trillion-in-201/