A way to save $160 billion in healthcare costs

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According to a report from Price Waterhouse Coopers health information technology can save more than $160 billion a year from the $2 trillion each year Americans spend on health care. Since nearly 80% of physicians and 75% of hospitals still rely on paper there is a major opportunity to develop new DTC interactive tools NOW instead of waiting on the sidelines waiting to see what happens.



Pharma still spends way too much money on the sales force which over time has become less and less effective. Lilly still requires most of its executives to go out to the field and spend some time before getting promoted. This model is outdated and if in fact pharma is looking for ways to increase reach with physicians and patients they should be thinking in terms of Web 2.0 and the adoption of the tablet PC both as a detail and training aid.


Most physicians today don't have the time to meet with pharma reps and see them no more than messengers who distribute product samples. Yet pharma hires reps teaches them to use rehearsed pitches and send them out to try and establish a relationship with physicians. Last week while at the doctors office I saw two reps show had waited over 2 hours to see the doctor even thought the nurse told them that he was extremely busy. After the 3rd hour they just handed their samples, stomach acid reducers, to the nurse and said that they would come back next week. That costs how much?


Detailing is becoming more and more expensive as fuel costs continue to rise. Rather than ask for physicians time pharma needs to take the message to them where they are when they have time...and the online channel is the best way to do this. Imagine reps with tablet PC's who can customize details for physicians. Don't have enough time? Then the rep makes a note of this in the tablet PC and an eMail to the physician is automatically generated with a link to an online detail or CME. After the physician completes the detail he or she has the option to request samples which are then sent out in the mail.


As physicians and hospitals begin to adopt electronic records there will also be increased need for patient educational support. A patient who is receiving chemotherapy, for example, could view a short presentation on the drug(s) she is receiving with suggestions to stay healthy and an explanation of how the drugs work. PCP's could use a patient education piece that could inform people who are overweight that little changes in diet and lifestyle can be a start to a healthier life.


Most of big pharma has chosen to sit on the sidelines with the possibility of anything "e". Yes they have websites which push information but true patient interaction via education is still a big gap. Some of pharma dabble in some e initiatives but most are still in the dark ages when it comes to blazing new trails. They would rather spend the money on old models such as sales people in their Ford's with the canned speech or in DTC that is becoming less and less effective. There is an opportunity out there waiting to be picked and the company that is first to explore these options will find the rewards are a lot higher than the risks.

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