This is the final post in a three-part series on artificial intelligence in healthcare.
Of all of the marketplace dynamics and advances currently posing a threat to pharma’s traditional methods and models, artificial intelligence and advanced data science are causing their fair share of consternation. I recently addressed this issue with my colleague John Piccone, a ZS principal and advanced data science expert who previously led IBM Watson Health’s life sciences offerings, and he succinctly stated the commercial transformation challenge that lies ahead: “Pharma’s role is going to change from educating people to educating algorithms.” How can pharma get there? What steps can companies start taking now to adapt? John has some ideas.
artificial intelligence & pharma,
AI blog series
Healthcare reimbursement in the U.S. is undergoing a fundamental transformation. The Center for Medicare & Medicaid Services has led this transformation, announcing that 50% of all Medicare payments will shift from fee-for-service to alternative payment models by 2018. Pharmaceuticals have been entirely omitted from these plans, as Medicare is legislatively prevented from negotiating drug prices. Hence, manufacturers and private payers are expected to play a dominant role in determining payment models that reimburse pharmaceutical manufactures for value in the form of patient outcomes, rather than the pills, themselves.