New Oliver Wyman Report Details Disruptive Market Shifts in Healthcare

Next-Generation Business Design Will Reshape Current $3 Trillion
Sick-Care Market into New $6 Trillion Health and Wellness Marketplace

NEW YORK–(BUSINESS WIRE)–Like other industries before it, healthcare is bending to
consumer-centric pressures. According to The
Marketplace Revolution
, a new report from Oliver Wyman,
consumerism is powering a complete remodel of the healthcare market. But
the transformation is about much more than patient-centric innovations.
The true revolution, the paper establishes, is the emergence of an
entirely new business design, one that ignores the boundaries and
economic framework of the existing healthcare market to deliver health
and wellness on consumers’ terms.

As detailed in the report, this next-generation business design is
driven by consumer needs, not sick-care codes and plan design; and it
will enable Health Market 2.0, in which multiple industries converge to
create a new consumer health, wellness, and better-living marketplace.
According to Oliver Wyman analysis, the rise of this business model will
shape a new $6 trillion health, wellness and better-living market – one
that is dramatically more effective with 40 percent better value and 100
times improved consumer experience.

“While we are talking about creating new tech-enabled market spaces, the
biggest near-term impact will come from connecting adjacent markets,”
said Tom
, Oliver Wyman partner/founder of the Oliver Wyman Health
Innovation Center and co-author of the report. “By connecting health,
wellness, and lifestyle, we begin to break the economic death spiral of
our fee-for-service sick-care system and enable the new generation of
health-and-wellness companies to meet consumers where they are, while
getting our health system back on a sustainable track.”

What does this new business design look like? Drawing on extensive
cross-industry research and analysis, The Marketplace Revolution
defines the business design that has been utilized by companies such as
Uber, Amazon, and Airbnb to disrupt other industries, and now is being
employed by an increasing number of healthcare companies and
organizations. The model revolves around three essential elements:

  • magnetic experience
  • intelligent hub
  • personalized marketplace

“Single-chain models only address a small part of consumer needs. The
power of the multi-chain design is it connects the dots for the consumer
to put the health and wellness market on their terms,” Main said.

The design is already being deployed with real results in the chronic
care space. The report details how incumbents and new technology players
have teamed up to create a new, multi-chain chronic care hub. In this
hub, digital and mobile technologies are converging with biometric
monitoring devices, cloud-based data aggregation, and highly
personalized health coaching to create a more predictive, affordable,
and effective chronic care management system.

“Today, it’s not a question of if the industry will evolve, but how new
players and incumbents will define their roles in the new
consumer-centric health marketplace,” Main said, adding that both are
essential to the new borderless and collaborative multi-chain business
design. “This is a once-in-a-generation transformational opportunity
that is not possible without incumbent and innovator collaboration.”

The Marketplace Revolution report is the fourth in a series of
reports about the changing healthcare landscape in the U.S. The
Marketplace Revolution
builds upon The Patient-to-Consumer
report which focused on consumer centricity
and the connection between health and lifestyle. The Volume-to-Value
report focused on patient-centered care, consumer
engagement, and the science of prevention and the Quiet Healthcare
focused on the frail-elder market.

About Oliver Wyman’s Health & Life Sciences Practice

Oliver Wyman’s Health & Life Sciences practice serves clients in the
pharmaceutical, biotechnology, medical devices, provider, and payer
sectors with strategic, operational, and organizational advice. Deep
healthcare knowledge and capabilities allow the practice to deliver
fact‐based solutions. For the latest on the business of transforming
healthcare, visit Oliver Wyman Health digital platform at

Oliver Wyman

With offices in 50+ cities across 26 countries, Oliver Wyman is a global
leader in management consulting that combines deep industry knowledge
with specialized expertise in strategy, operations, risk management, and
organization transformation. Oliver Wyman is a wholly owned subsidiary
of Marsh & McLennan Companies [NYSE: MMC]. Follow Oliver Wyman on
Twitter @OliverWyman.


Oliver Wyman
Francine Minadeo, 212-345-6417