In 2020, global investments in digital access to medical services reached a record $21.6 billion!

One-third of pharmaceutical company executives believe that the COVID-19 pandemic has accelerated the digital transformation of their sector by at least five years – according to the report "2021 Global Life Sciences Outlook. Possibility is now reality, sustaining forward momentum," prepared by the consulting firm Deloitte. The life sciences and healthcare industry plays a key role in the fight against the pandemic. In the face of the crisis, even former market rivals decided to cooperate to accelerate the development and deployment of an effective vaccine.

The healthcare industry is expanding its scope of activity not only by accelerating digitalization and technological progress. According to Deloitte experts, unprecedented changes also concern innovative approaches to the work environment, new models of healthcare delivery, and the scope of cooperation within the sector and with external partners. Everything indicates that the new approach is not just a temporary change.

As a result of the coronavirus outbreak, new technologies that were supposed to develop over the coming years were implemented almost overnight. Their combination with years of experience and investment outlays made by healthcare sector companies resulted in success. The innovations developed allowed for effectively limiting the spread of the threat, and sustaining the current momentum of change may constitute another milestone in development for medical companies – says Krzysztof Wilk, partner in the tax advisory department, leader of the Life Sciences & Health Care practice, Deloitte.

Hybrid work does not worsen efficiency

Hybrid work does not worsen efficiency

COVID-19 has fundamentally changed our personal and professional lives. The new conditions for performing work duties forced by the pandemic and the procedures used have caused companies operating in the life sciences sector to focus much more often and to a greater extent on the individual needs of employees and on promoting their mental and physical well-being.

According to the Deloitte report, these circumstances have caused most healthcare sector employees to view remote work critically. 64 percent prefer a hybrid model of performing work duties and spending at least part of their working time in the office. At the same time, as many as nine out of ten assess that a flexible approach does not affect their productivity.

It is crucial for companies to focus on promoting a sense of community among employees regardless of where they perform their work tasks. They should also ensure the adoption of specific solutions regarding mental health, promoting well-being initiatives, and flexible working conditions – says John Guziak, partner, human capital leader at Deloitte Poland.

Digitalization accelerates – new tasks for the healthcare industry

Digitalization accelerates – new tasks for the healthcare industry

Record investments in digital access to medical services

According to estimates by Deloitte experts, the changes already introduced do not mean their end. What certainly requires improvement is the measurement of the quality of services offered – 75 percent of directors in this sector admit that they do not conduct it at all or only to a limited extent. At the same time, only 36 percent of them declare that training on online etiquette is available in their institutions.

Global investments in digital access to medical industry services reached a record value of $21.6 billion in 2020, which means a year-on-year increase of 109 percent. This year, investors do not intend to abandon financing further innovations, and with the help of digital tools, remote healthcare can fundamentally change access to medical services and improve customer experiences.

Digitalization facilitating access to remote medical care has caused the percentage of video medical consultations to increase in 2021 to 5 percent from 1 percent in 2019. Providing care has ceased to be the domain of medical facilities and is much more commonly delivered remotely in patients' homes. Medical companies are therefore increasingly and on a much larger scale using technology to meet consumer expectations – says Jan Michalski, Deloitte Digital leader in Central Europe.

Customer in focus

Sales models in force in the medical industry over the past year have focused much more often on digital and remote contact with medical service providers. Remote sales indicators soared along with the spread in 2020 of virtual meetings between doctors and sales representatives. In January of last year, there were fewer than 5,000 of them worldwide, while by April they reached more than 316,000. In the further development of this type of interaction, or those combining in-person meetings with remote contact, proper recognition and effective matching of the offer to individual customer expectations and needs will be essential. One-third of pharmaceutical company directors believe that the outbreak of the pandemic accelerated the digital transformation of their sector by at least five years. The medical industry may expect further growth in investments and greater cooperation with strategic partners in the near future. All so as to make the most effective use of the position it has built and not to disappoint the hopes placed in it – says Jan Michalski.

Cross-sector and inter-competitor cooperation

Cross-sector and inter-competitor cooperation

The conditions imposed on everyone by the pandemic caused healthcare sector companies to demonstrate greater flexibility, significantly accelerate existing procedures, and improve the efficiency of their operations. This is clearly visible in the pace of work on new preparations – until now, the standard was to devote more than eight years to this purpose. COVID-19 vaccines were developed, tested, and approved in less than a year. Technological innovations certainly helped in this regard, making it possible to conduct research on a larger scale and monitor participants remotely. Moreover, legislators also demonstrated greater flexibility, significantly shortening the period for approving preparations for use.

Vaccination policy forced a global perspective on population health, broader cooperation between industry and regulators, and the exchange of scientific knowledge between research centers. Such an approach may also find application in oncology – the second area of activity after vaccines that is a driving force behind the financial growth of the healthcare sector – says Tomasz Borowy, director in the risk management team, Deloitte.

ESG priorities

According to Deloitte experts, during the pandemic many industries experienced a rapid change in the way they are perceived. In the case of the life sciences sector, however, this change was most clearly visible. Given its leading role recently, companies must strive to build customer trust and in this way strengthen the industry's image in society. To achieve this, it is necessary to develop an effective way of measuring progress in ESG (Environmental, Social and Corporate Governance). More and more companies in the medical industry are trying to take responsibility for their operations and limit the impact of their activities on environmental pollution. At the same time, they invest in solutions that break down barriers and inequalities related to gender and race and drive significant changes in society.

Summary

The COVID-19 pandemic forced an unprecedented acceleration of digitalization in the life sciences sector. Investments in digital access to medical services reached a record $21.6 billion in 2020, which means an increase of 109 percent year on year. One-third of pharmaceutical company directors estimate that the crisis accelerated digital transformation by at least five years, and the number of virtual meetings between doctors and sales representatives increased from 5,000 in January to more than 316,000 in April.

Deloitte experts emphasize that the hybrid work model has gained recognition among 64 percent of sector employees, and the flexible approach does not negatively affect their productivity. The industry also faces the challenge of improving the measurement of service quality — 75 percent of directors admit that they do not conduct it at all or only to a limited extent.