Presentation by PwC Health Research Institute for mHealth Israel, February 17, 2021: Top Health Industry Issues of 2021...Will a Shocked System Emerge Stronger? Key Sections: 1) Rightsizing after virtual visit explosion 2) Changing clinical trials 3) Easing physician burden with digital 4) Healthcare forecast for 2021 5) Reshaping health portfolios 6) Resilient and responsive supply chains 7) Inter-Operability

1. Get Smart webinar
December 11, 2020
Top health industry issues
of 2021: Will a shocked
system emerge stronger?
Top health industry issues of 2021:
Will a shocked
system emerge
stronger?
PwC Health Research Institute
Presentation to mHealth Israel
February 17, 2020

2. PwC | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Today’s presenters
Top Health Issues 2021: Will a shocked system emerge stronger?
Sarah Haflett
Research Leader
Health Research Institute
sarah.e.haflett@pwc.com
Benjamin Isgur
Leader
Health Research Institute
benjamin.isgur@pwc.com
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3. PwC | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Top Health Issues 2021: Will a shocked system emerge stronger?
About this report
Each December, right before the holidays, HRI
names the trends that will shape the US health
industry in the coming year.
The report, HRI’s flagship, is developed from
input from dozens of PwC partners and staff,
interviews with health executives and other
industry experts and analysis of government
and industry data.
The report also was informed by surveys
conducted by HRI of more than 2,500 American
consumers and more than 400 executives from
providers, payers and pharmaceutical and life
sciences companies.
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4. PwC | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Heart of the matter – Will a shocked health system emerge stronger?
While in 2020 many health organizations saw their financial plans obliterated, patient behaviors radically shift and virtual care
explode, in 2021 they will work to put the system back together. Not to how it always was – but in a way that reimagines
healthcare delivery, reconnects broken pathways and makes a giant leap toward a consumer-centric health system.
In 2021, the industry develops its
own forecasting systems,
reshapes business portfolios
post-pandemic and creates a more
transparent supply chain.
Industry builds resilience
for long-term survival
Health organizations take the
lessons from the sudden 2020
virtual experiment to build better
digital experiences for consumers
and clinicians while rethinking
clinical trials and research.
The pandemic fuels a
digital surge
The stress of the pandemic and the
economy weighs on an American
public showing higher levels of
anxiety and depression--with a
frontline clinical workforce
absorbing the brunt of it.
The nation faces a
mental health crisis
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5. PwC | Top health industry issues of 2021 – Will a shocked system emerge stronger?
The pandemic’s effect on Americans’ mental health is staggering
48%
of US consumer households with dependents under 18
said they have experienced anxiety or depression as a
result of the pandemic
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6. PwC | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Top health industry issues of 2021:
Will a shocked system emerge stronger?
The health industry rightsizes after the virtual visit explosion
Health portfolios reshaped for growth
Clinical trials are changing—for good
Digital relationships that ease physician burdens
A resilient and responsive supply chain built for
long-term health
Healthcare forecasting for an uncertain 2021
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7. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
1
1
The health industry rightsizes after the virtual visit
explosion
Health services provider executives cite multiple
challenges in growing telehealth
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Key findings
• 92% of healthcare provider leaders told HRI their organizations are using
telehealth for primary care services. The largest share, 68%, said telehealth
has been most useful for follow-up appointments.
• Some specialties, such as mental health, may find stronger footing via
virtual visits.
• Only 17% of health provider leaders are using telehealth for ongoing care
management, which may mean a missed opportunity.
• Of consumers surveyed who had a telehealth visit, 53% said they
encountered at least one issue during the visit such as a technical issue or
not knowing what their next steps were.
• 66% of Black consumers and 65% of Latinx consumers experienced at
least one issue, compared with 49% of white consumers.
• A hyperfocus on getting the reimbursement right may be creating a blind
spot to issues of consumer experience and clinical workforce satisfaction
(see figure).
• 78% of executives of Medicare Advantage plans said their plan is offering
telehealth directly to seniors.

8. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Half of consumers who have had a virtual care
visit said they encountered at least one issue
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1
The health industry rightsizes after the virtual visit
explosion
Implications
• Tie virtual to in-person seamlessly to reduce leakage and maintain ancillary
services, follow-up appointments and prescription levels.
• Ensure that the move to virtual does not create new disparities.
• Prepare for a wider competitive landscape for virtual health.
• Understand the impact of payer telehealth strategies on local primary care
clinicians.
• Bridge the consumer education gap with PLS technologies.
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9. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Many pharmaceutical companies expect virtual trials
to grow significantly over the next five years
Clinical trials are changing–for good
Key findings
• Almost all PLS executives (98%) expect digital investment in clinical trials
to increase next year, especially in oncology, infectious disease,
immunology, and women’s health.
• 93% of PLS executives said virtual trials are important to their company’s
pipeline in the next five years.
• HRI found that consumers are more likely to say they’d participate in a
clinical trial if they could do so remotely.
• Between Feb. 1 and Oct. 28, 2020, the FDA issued nearly 350 emergency
use authorizations, compared to a total of 23 between 2010 and 2019.
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10. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
The FDA issued nearly 350 emergency use
authorizations over a nine-month period in 2020
Clinical trials are changing – for good
Implications
• Prioritize disease areas that are more conducive to enrolling patient
populations through decentralized models.
• Expect new players to emerge, offering digital tools and analytics aimed at
decentralized clinical trials.
• Expect new partnerships to form with demands for more real-world
evidence.
• Payers’ and providers’ patient population data may help companies develop
trial protocols that serve more diverse populations.
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11. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
1
Digital relationships that ease physician burdens
Key findings
• More than 90% of health executives are prioritizing the clinician experience
in 2021.
• The pandemic may have accelerated payers’ efforts to reduce physicians’
administrative burdens.
• Payer executives are more likely to focus on the physician-patient
relationship versus members directly. Expect more investment by payers in
process automation, such as provider contracting.
• Health systems will embrace team-based communication technologies and
fuel growth in the voice-to-text EHR documentation and referral
management technology markets.
• 77% of providers and 72% of PLS executives agree that the COVID-19
pandemic has at least somewhat negatively impacted pharma-clinician
engagement.
Provider and life sciences executives agree
that the COVID-19 pandemic has negatively
impacted pharma-clinician engagement
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12. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
1
Digital relationships that ease physician burdens
Implications
• Use omnichannel engagement to improve the pharma-clinician experience.
• Focus on better digital information and interactive tools for physicians to
communicate with patients, not just PDF versions of materials.
• Use human-centered design to uncover how clinicians actually perform
tasks.
• Integrate digital solutions into care models and business operations.
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13. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
1
Healthcare forecasting for an uncertain 2021
Key findings
• 74% of health executives said their organizations would invest more in
predictive modeling in 2021.
• Regional forecasts require local collaboration: 73% of healthcare
executives surveyed said they were starting to collaborate or had plans to
collaborate with other care providers and payers as a result of the
pandemic.
• Missed opportunity for reconnecting patients to care: 53% of consumers
HRI surveyed still report fear about going to the doctor during the
pandemic, but only 27% said they were getting information from their
physician about when it was safe to return for care.
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More communication from doctors could ease
worry and encourage patients to return for care

14. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Implications
• Health forecasts should be real-time, and fueled by regional clinical and
nonclinical data. Regional collaboration is key.
• New entrants or health information exchanges may have the platforms to
help collaborators unite the data in one place.
• Use regional forecasts to make better decisions not only for financial and
population health, but at the individual level, with clinical and nonclinical
data that contextualizes a person’s life (see figure).
• Enable vaccine distribution with better forecasting and understanding of
consumer preferences. Among consumers surveyed by HRI who said that
are willing to get a COVID-19 vaccine within the first year, preferences for
the site of vaccination differed based on age and race.
1
Healthcare forecasting for an
uncertain 2021
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15. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Health portfolios reshaped for growth
Payers’ risk-based capital ratios during the
pandemic create opportunities to invest
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Key Findings
• The pandemic has highlighted the need for many health organizations to
diversify their capabilities and revenue streams to be more resilient.
• The COVID-19 pandemic placed some companies in a position to invest
and evolve, and others needing to partner to survive.
• The average risk-based capital ratio for health plans grew from 616% in
2019 to 690% in the second quarter of 2020.
• RBC levels during the pandemic create an opportunity for payers to invest,
but also generate risks if not invested. As of September, 55% of consumers
with complex chronic disease surveyed by HRI said they or a doctor had
delayed some care since March 1; 29% said they had not yet received it.
• Some pharmaceutical and life sciences companies have entered
partnerships rather than deals to work on COVID-19 diagnostics,
therapeutics and vaccines.

16. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Health portfolios reshaped for growth
Implications
• Insurers and well-positioned providers can advance investments in digital,
value-based arrangements and customer experience.
• Struggling providers may find deals key to survival in 2021.
• Pharmaceutical and life sciences companies continue to eye gene and cell
therapy investments and R&D innovation.
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17. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Key findings
• 94% of life sciences executives and 86% of provider executives said that
improving their supply chain overall was a priority in 2021.
• HRI expects the health industry in 2021 to start to reconstruct the supply
chain to function more flexibly as it does in other industries.
• Among pharmaceutical and life sciences executives surveyed by HRI, 82%
said they expected to reshore components of the supply chain within two
years or within five years.
A resilient and responsive supply chain built for long-term
health
Life sciences and provider executives say they
will prioritize supply chain transparency in 2021
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18. PwC Health Research Institute | Top health industry issues of 2021 – Will a shocked system emerge stronger?
Implications
• Organizations should know as much as possible about their suppliers’
suppliers and establish new collaborations to secure the supply chain
through diverse geographies.
• Pharmaceutical and life sciences companies should plan for reshoring now.
• For providers and distributors, joining group purchasing organizations may
be key to securing primary and secondary resources.
• End-to-end supply chain transparency will be crucial, especially through
that “last mile” to the consumer. Communication strategies powered by
advanced analytics and consumer preference data can be essential to
vaccine distribution.
A resilient and responsive supply chain built for long-term
health
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firm is a separate legal entity. Please see www.pwc.com/ structure for further details. This content is for general information purposes only, and should not be used as a
substitute for consultation with professional advisors. 774084-2021 Jc Ct
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