The COVID-19 outbreak continues to rampage major cities, countries and continents across the globe. Within a span of four months, 44,201 people have succumbed to the pandemic with a total 655,591 active cases as of 1st April, 2020. Apart from societies, COVID-19 has been equally devastating for major economies of the world, predominantly the healthcare sector. Prominent stakeholders continue to adjust their strategy with the rapidly evolving situation. COVID-19 is expected to have major long-term consequences on the healthcare industry. Countries and key players will have to undergo crucial healthcare reforms once the crisis takes a back seat. Technological advancements, cost control, and greater access will be indispensable part of healthcare reforms in foreseeable future.
Leading Pharmaceutical Companies to Benefit from Global Pandemic
In the light of ongoing disruption spurred by COVID-19, most companies would have to adopt new business models and philosophies for better management of potential outbreaks in future. Countries with enormous healthcare spending are likely to benefit from this pandemic. Companies are escalating the production of diagnostic tests and therapeutics in the race to effectively identify and treat patients suffering from this highly communicable respiratory disease. Eventually, the company which successfully develops and launches vaccine for COVID-19 would cross the finish line. However, a commercially viable vaccine is still 12-18 months away. Leading pharmaceutical companies are receiving impetus from governments to accelerate the human trials of vaccine.
Besides, other companies which are likely to benefit from this pandemic are those which produce ventilators, hospital beds, face masks, safety gears, and other medical equipment. However, with numerous countries banning the export of medical equipment, the global supply chain has been severely affected. The domestic production on the other hand continues to surge with several entrepreneurs offering to manufacture medical gears and equipment.
Hospitals Continue to be Overwhelmed with COVID-19 Patients
Hospitals are the worst affected by this pandemic. COVID-19 has taken a huge toll on healthcare professionals, particularly in developed countries such as Italy, Spain, France, and the United States. Healthcare experts fear that developing countries might be on the same trajectory where the outcome can be even worse in the absence of proper health infrastructure. Patients with existing conditions are experiencing delays in elective surgeries with doctors and nurses working non-stop to treat COVID-19 patients. Lack of liquidity and administrative overload are causing delays in reimbursements as well. These are short-term consequences which the healthcare industry is already witnessing.
Long-term Consequences of COVID-19: Reprioritization of Healthcare Agenda
In the next 6-12 months, major players would have to expand their capacities and divert most of their human and financial resources towards COVID-19 management. Funding will continue to be a major constraint in the effective management of COVID-19, particularly making the vaccine accessible for the poorest of the poor. The current pandemic has exposed critical shortcomings in healthcare infrastructure, even in countries with world-class medical facilities. When the crisis subsides, countries will have to reprioritize their healthcare agenda. The future reforms will be centred on cost, coverage, and quality of healthcare. With more political support, healthcare industry is likely to carve out major chunk of resource share in foreseeable future.
Digital Health: Future of Healthcare
In the midst of current outbreak, digital health and telehealth have taken a front seat. COVID-19 has reemphasized the importance of remote diagnosis, consultation and treatment. Regulatory and behavioural obstacles have been slowing the growth of telehealth in the past few years. However, with many healthcare providers giving consultation over video conferencing and phone calls at present, the growth of this segment will augment many folds within the next two years. The social distancing measures have mandated patients with mild symptoms to opt for remote consultation. Further, it greatly reduces the burden on hospitals already swamped by scores of COVID-19 patients. The pandemic has led to major resource constraints. This will lead to development of alternate pricing models and value-based pricing.
Preventive Healthcare System: Backbone of True Public Health
The repercussions of COVID-19 will be felt for many years to come. The outbreak has stressed the need for detecting the onset of such pandemics beforehand and brace for impact. The under preparedness has cost thousands of life and pushed the world economy into recession. Moreover, the protection of frontline health workers is a paramount matter of concern which will shape government policies in future. Preventive care should be the basis of effective healthcare systems. However, this transition will be complex, and should be carried out in phases over the next few years. Health leaders emphasize that psychological and financial depletion of healthcare systems are likely to escalate this transition. Preventive healthcare system will completely change the way healthcare services are measured and delivered.
About the Author
Sabyasachi Ghosh heads FMI’s healthcare, pharmaceuticals and medical devices domain. The insights presented in this article are based on FMI’s research findings on Healthcare Robots Market Study of Future Market Insights