UPS Healthcare Forum Ackerman

Top 5 Takeaways from the 2019 UPS® Healthcare Forum

Leading figures in the healthcare sector and UPS specialists convened for the 2019 UPS Healthcare Forum to discuss advances in the healthcare supply chain. Participants talked on using technology and policy to improve people' access to healthcare. Here are some of the main lessons learned from the occasion:

1. Growing e-commerce and healthcare confluence

The landscape of healthcare is fundamentally shifting as a result of e-commerce. Healthcare providers are being held to the same standards as retail e-commerce businesses by patients. Patients are now customers rather than patients. They desire:

readily available details about their medical professionals and available health-related services

Convenience, such as having prescription drugs delivered to their homes or receiving alerts when their prescriptions are available for pickup

transparency in product and service pricing

The business model has been altered by the Amazon impact. According to Rob Feeney, CEO of MedVantx, "it has forced the healthcare industry to partner with logistics providers, like UPS, to change their commercial strategy towards an online consumer engagement platform."

The industry has changed its approach to put more emphasis on empowering the patient with information, visibility, and accessibility to healthcare products and services as a result of these expectations, which were influenced by consumers' retail experiences. Patients increasingly demand the same openness and ease of use that they enjoy, for instance, while doing their grocery shopping online. They can receive notifications on their smartphone as fresh food is harvested, transported, and finally delivered to their house with only a few clicks. Customers in the healthcare industry have similar expectations.

2. Boomers turning old are fueling demand for home healthcare

There will be 61 million persons between the ages of 66 and 84 in the world by 2030. Some researchers are worried that the healthcare system won't be able to support these elderly Baby Boomers' extensive medical care needs. The baby boomer generation, known as the "2030 problem," is looking at healthcare options other than the conventional ones in order to get the help they require in their senior years.

With longer life expectancies, fewer children, and high divorce rates among baby boomers, more people may prefer to age alone, necessitating the need for greater options for home nursing.

According to Ana Hooker, senior vice president of Exact Sciences, the idea of "ageing in place"—bringing on-site care into the home—has its difficulties. The obstacles Exact Sciences has sought to overcome include figuring out how to reach the patient from their home in order to deliver proper care instructions, the precise prescription dosage, and to be available 24/7 in case patients have any queries. We now have a customer service team on call around-the-clock to assist patients with home screening test completion.

3. Technology is being used by consumers to take charge of their healthcare experiences.

Technology has raised our expectations and made it possible to access a wide range of goods and services on demand, just as e-commerce has changed consumer behaviour in terms of how we purchase. Despite the fact that these tendencies diverge somewhat from those in healthcare now, consumers are pressing for change through technology.

"In the healthcare industry, we may not always have a direct line of sight to all of our care and product options. According to Dan Gagnon, vice president of global healthcare and life sciences logistics at UPS, "We don't have a constant feedback loop on the quality of treatment and the quality of our products, and we don't have pricing transparency. However, that day won't be too far off when you won't be able to sleep at night.

Customers want better patient experiences delivered by technology and innovation. A $1.7 billion market is expected for AI in healthcare this year, according to Forbes, thanks in part to advancements in pharmaceutical research and medical imaging analysis. Additionally, as more temperature-sensitive biologic medications enter markets around the world, cold-chain shipping will play a bigger part in the healthcare supply chain.

What does all of this mean for the supply chain, then? "Regardless matter where our supply chains finish, we must begin formulating and coordinating our patient empowerment programmes. This could imply that patient accessibility for product distribution is improved, according to Gagnon.

4. The supply chain is being secured by blockchain technology

Because technology is so important to the healthcare sector, stronger security controls must be put in place to guarantee secure medical transactions and the transportation of drugs along the supply chain. 

Blockchain is a decentralised ledger of actions and transactions that is shared among a network of computers, time-stamped, and tamper-proof to assure verification and trust. Executing a common protocol, or set of business rules, for one of their business processes can lead companies to decide to create a network. And the only way to alter these guidelines is to get the consent of all participants.

Because everyone has authority over their own data and can ensure that all transactions comply with industry standards, this decentralised approach is crucial for the healthcare sector.

5. The global healthcare industry is being shaped by politics and policy

According to 41% of Americans in 2018, healthcare policy is the most crucial problem that has to be addressed by the US Congress. Bipartisan solutions are required to establish long-lasting legislation, according to Laura Lane, head of global public affairs at UPS. Advocating for legislation like the STOP Act, which aims to help stop the opioid epidemic, and more modern customs procedures (to speed up the customs clearance process), can assist ensure that patients who need pharmaceuticals have access to them.

"No matter how much political, demographic, or technical change there is, we will be leading the charge in promoting the laws that support patients and healthcare providers. Hopefully UPS can expand alongside you as you grow, Lane added.

Visit ups.com/healthcare to find out how UPS can assist you with your healthcare supply chain.