The drug approval process is infamous for its complexity and the length of time to develop. But as complicated as standard drugs are to develop, biologics-such as vaccines-are more complicated.

vaccines take about 10 to 15 years to develop

 for a standard drug. In addition to the longer development period, vaccines also have a lower success rate-

 ever reach the market, compared to about a 

That long lead time and high failure rate means that a large number of needed vaccines are still missing from healthcare’s armamentarium.

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One study from the Duke Global Health Institute’s Center for Policy Impact in Global Health 

. Analyzing over 500 vaccine candidates for 35 neglected diseases in the pipeline, the study found the chances of efficacious vaccines gaining approval over the next five years is “unlikely.” This study concluded that there is a significant gap in funding.

However, not all of the pipeline news is as bleak. From improved flu vaccines to the first

) vaccines, there are many exciting recent and upcoming developments in vaccines.

close to half a million Americans every year

, according to the CDC. A large reason for the spread of 

 is inappropriate antibiotic prescribing. According to the CDC, about 

30% of antibiotic prescriptions are unnecessary

-and while measures have been made to reduce overprescribing, 

still directly leads to around 15,000 deaths annually. The CDC concludes that 

Beyond reducing overuse, part of the fight against those infections are vaccines in the pipeline. The 

 in late 2017. However, there are still two good candidates in the pipeline.

, Pfizer is hopeful that phase 3 trials, set to conclude late next year, will allow the vaccine to be the first 

VLA84, from Valneva, is another candidate that ran into money problems. While the company says its vaccine is ready for phase 3 trials, 

 due to lack of a partner to help shoulder the cost of trials. Valneva says that they will only continue trials if there is another vaccine approved and it can perform a head-to-head trial against it. That gamble could pay off though-Valneva says the market potential for prophylactic 

 products could exceed $1 billion annually.

Every year, according to an article published last year in 

influenza results in $3.2 billion in direct costs

, along with $8 billion in indirect costs. The last flu season resulted in 

959,000 hospitalizations and 79,400 deaths

Despite this, flu vaccination rates remain low-the CDC estimates that only 

37.1% of eligible adults received a flu vaccine

 over the 2017-2018 flu season. While initial reports those numbers may be slightly higher over this most recent flu season (full data won’t be available until September this year), those numbers are 

While the general population gives a wide variety of reasons for 

-including unfounded fears of getting flu from the vaccine or not having access-many people (particularly younger people) cite the fact that 

. This notion isn’t without weight: The 2017-2018 flu vaccines had such a low efficacy rate (

) that former FDA Commissioner Scott Gottlieb, MD, made 

 on why the vaccine was not effective and what the FDA was doing to increase that effectiveness.

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Recently-approved and as-yet-unapproved products could make that dream of a more effective vaccine a reality.

 available in the United States, first approved in 2016. This formulation, based on preliminary studies, seems to 

 than traditional egg-based flu vaccines.

What’s most exciting about cell culture-based vaccines though, according to the FDA, is their ability to be quickly manufactured-making them an ideal candidate for dealing with possible pandemics.

Another exciting prospect in the pipeline also relies on something other than an egg base. 

Medicago’s VLP quadrivalent plant-based flu vaccine

, currently in phase 3 efficacy trials in seven countries including the United States, could present another option for faster-produced, more effective vaccines.

Medicago says that it’s plant-based process requires only five to six weeks to produce a clinical-grade vaccine, compared to the 5 to 6 months it generally takes for egg-based vaccines. This speed, the company says, could allow for it to more easily keep up with the constantly-mutating flu virus.

This is due to the fact that egg-based vaccines are susceptible to changes. Because viruses only grow in living cells, 

. For flu vaccines, this is often done in chicken eggs. This process can lead to 

 in viruses, which create viruses different than those found in the wild. While some research suggests that these 

egg-adapted changes are not always responsible

 for poor-performing flu vaccines, it may be a factor that if eliminated could result in much more effective vaccines.

Another pipeline candidate is Seqirus’ Fluad QIV, an upgraded, quadravalent formulation of its already-approved trivalent Fluad. If approved, Fluad QIV would be the first adjuvanted quadrivalent flu vaccine. According to Datamonitor Healthcare, it performs better than other traditional inactivated flu vaccines, meaning that in its expected launch for the 2020-2021 flu season it could capture a large part of the elderly population.

While perhaps more tenuous, new so-called 

 are designed to cover all strains for several seasons. They could help increase protection over multiple years and avoid problems with shifting virus strains-if they receive approval and demonstrate those claims. 

 says that if approved, these vaccines could hold great promise, as they could boost confidence in vaccination and increase coverage rates.

One of the best candidates, BiondVax’s M-001 is currently only in phase 2 in the United States. However, it has been a part of 

 in Europe and Israel, and is currently in Phase 3 in Europe. FLU-v from hVIVO is another phase 2 universal vaccine candidate, and it too is set to begin phase 3 trials in Europe.

One potential problem for universal vaccines, according to Datamonitor Healthcare, is that payers are looking for low-cost vaccines-indicating that these could be priced higher than traditional vaccines.

900,000 Americans get pneumococcal pneumonia

 (the most common form of pneumococcal disease in adults) every year-resulting in over 400,000 hospitalizations. While vaccines exist, the CDC says that about 80% of adults with conditions that put them at increased risk and 40% of adult aged 65 or older are unvaccinated.

best-selling vaccine is Pfizer’s Prevnar 13

, with about $3.5 billion in U.S. sales forecasted for 2019. The pneumococcal vaccine is the 2010 update to the previously-approved Prevnar 7. First approved in 2000, Prevnar 7 was the first pneumococcal conjugate vaccine. The update added an additional five serotypes to the original, due to the possibility of shifting strains of the disease (known as serotype drift). The CDC recommended in 2014 that all adults over the age of 65 receive Prevnar 13, leading to its massive spike in sales.

Three Vaccine Developments Healthcare Execs Should Watch

However, other pneumococcal vaccines with additional serotypes could threaten Pfizer’s market dominance.

Merck currently has a 15-serotype vaccine-V114-in phase 3 trials. According to Datamonitor Healthcare, it could replace Prevnar 13 on its expected approval in 2022-if it proves superior to Pfizer’s drug and if serotype drift occurs. GlaxoSmithKline also has a drug in phase 2 trials that, while only a 10-serotype version, is formulated in such a way that it could provide more coverage than Prevnar 13.

One of the biggest threats to Prevnar 13 could be an upgrade to Prevnar-Pfizer is currently working on a 

. That vaccine just began its Phase 3 trials earlier this year, so it likely won’t see a release for years.

. All preteens and teens should receive the meningococcal conjugate vaccine, with a booster given at 16, while only some are recommended the serogroup B meningococcal vaccine. That schedule can be affected by a host of other risk factors, potentially adding to the confusion.

GSK’s MenABCW-135Y is trying to clear up that confusion. According to Datamonitor Healthcare, it could achieve this due to its broad serotype coverage-it would be the first vaccine cover serotypes A, B, C, W, and Y, which could allow it to cover a wide range of patient populations. It would then replace GSK’s current Bexsero and Menveo vaccines. This would have the added benefit of reducing the number of physician visits required for vaccination. If approved, it is expected on the market in late 2021.

Another possible ripple in the meningococcal market is Sanofi’s Men Quad TT, a likely replacement to the well-established Menactra. According to Datamonitor Healthcare, it could then charge a premium price if it shows superior immunogenicity to Menactra and Menveo.

However, that premium price may be short lived. While its expected launch date is a full year ahead of MenABCW-135Y (Q1 2020), GSK’s vaccine is likely to overtake it. This would give the vaccine a short window of use.

While early and preclinical trials are generally poor indicators of what will actually come to market, they still provide an interesting look at what might be possible. These are some of the interesting vaccines in very early stages.

 are currently developing a vaccine for heroin that would prevent users from getting high and addicted to the drug. Still in very early stages (human clinical trials have yet to begin, though researchers say they are close), the vaccine could be a much-needed solution to a serious problem-heroin led to 

, in part driven by the ongoing opioid epidemic.

An HIV vaccine has remained elusive for pharmaceutical manufacturers. Currently, the best chance of success is with the study 

, a South African phase 3 trial set to complete in 2021. That trial is 

 first tested in Thailand-that study delivered results in 2009 that showed that it prevented the virus, but the results were modest. The South African study is being cofunded by the National Institutes of Health.

hospitalizes over 57,000 children each year

, along with 177,000 older adults. About 14,000 of those older adults die from the infection each year, according to the CDC. No vaccine exists, the current treatment is palivizumab, which can provide some protection-but requires a monthly shot and isn’t always effective.

While Novavax’s ResVax seemed promising, it 

 that it failed its primary objective of prevention. According to Datamonitor Healthcare, Novavax has sent its drug back to Phase 2 trials with a different formulation so it could launch for the 2021-2022 season. Two other drugs, Johnson & Johnson’s Ad26.RSV.preF and Bavarian Nordic’s MVA-BN RSV could both launch in the coming years for use in the elderly population.

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The vaccines that could make a big impact on healthcare, from radical new flu vaccines to simplified meningococcal vaccine regimens.

What You Need to Know About the Vaccine Pipeline

Priority Health is a $4 billion Michigan-based health plan that is nationally recognized for improving the health and lives of the people it serves-and leading the efforts is Joan Budden, its president and CEO.

“I really see my responsibilities as being threefold. First, it’s dealing with the current real-world healthcare issues and figuring out how to provide affordable care product and services that our members need to get healthy, be healthy, and stay healthy,” she says. “Second, it’s developing strategies for the future to understand what will be needed and anticipating how the industry will continue to evolve to make sure that Priority Health is well-positioned to take on the challenges of tomorrow.”

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And the third, which Budden has done to a tee, is to be a leader and champion of culture and talent within the organization.

“Underlying all of that, my most important responsibility is truly to our members, figuring out how we can provide value to the people and communities we serve,” she says.

 has reported growth across all business lines for the past five years and is now the second largest health insurer in Michigan, impacting nearly one million lives across the state each year. Priority Health was also the only insurer in Michigan to reduce rates on the individual market for 2019.

With over 30 years of healthcare experience, including leading the individual consumer division, project management office and corporate strategy departments for Blue Cross Blue Shield of Michigan, Budden came to the health plan in 2009 looking for a change.

“After many years of experience in a standalone insurance company, I was interested in exploring the complexities and advantages of a fully integrated health system that included a health plan, a medical group, and a hospital,” Budden says. “The opportunity to address complex healthcare issues from multiple perspectives and collaboratively debate the challenges and develop solutions was something that fascinated me.”

Today, she is a fierce advocate for Priority Health members and is committed to ensuring that they have the tools and resources they need to help them play an active role in managing their own health.

Under her leadership, Priority Health has designed affordable health plans that meet the needs of individuals across Michigan, which has resulted in a 35% increase in the number of people being covered.

“Many integrated delivery systems often have the heart of the member through the provider ties, but may lack some of the expertise from an insurance perspective to really soar,” she says. “We’ve always been known for being member focused, but recently we’ve also focused on strengthening our financial discipline and expertise to make sure we had a solid foundation from a business perspective. In addition, we have also made a commitment to really understand our members and their needs across all of our key market segments.”

For instance, she notes the needs of a 67-year-old Medicare member are significantly different from that of a 28-year-old shopping for insurance on the ACA exchange. So, by customizing the approach and focusing on the unique needs of each segment of membership, Priority Health was able to design plans and services that met the specific needs of every member.

Over the years, Budden has spearheaded numerous programs that reflect her commitment to transparency and passion for helping members engage in their healthcare.

“When trying to lift the cloak of secrecy surrounding cost of care, many people have resorted to price-shaming providers,” she says. “We took a very different approach. We recognize that it’s not about passing the buck or blaming others, it’s about giving consumers the information they need to be proactive and make an informed decision about their care.”

Priority Health’s Cost Estimator provides members instant access to cost information for hundreds of health care procedures in a way that’s personalized to their individual health plan-specific to their location, prescription, and benefits-to help them make truly informed decisions about their care.

Hundreds of procedures are available in the tool, and earlier this year, more than 6,000 prescriptions were also added.

“We also enhanced our Cost Estimator with a provider view to allow doctors and other healthcare providers to work together with their patients to find the best value when seeking care,” she says. “Priority Health is the only health plan in Michigan to deliver one comprehensive experience with a transparency tool, offering cost information for healthcare procedures, services, and prescriptions.”

Launched late last year, the Priority Health Wellbeing Hub offers a personalized online health and well-being experience. The Wellbeing Hub is intended to help members get and stay healthy by providing content and tools tailored to their specific health and well-being needs. The Wellbeing Hub uses predictive analytics, or “smart” learnings, to evolve the member’s experience-so it becomes more customized as they engage with the platform.

“I’m also proud of new care model programs like Home-Based Primary Care that allows us to meet members where they are, and provide personalized care-which improves outcomes and reduces costs,” Budden says. “Our program offers the patient a full support system of individuals dedicated to their health care and overall wellbeing.”

This team includes a physician, nurse practitioner, registered nurse case manager and a social worker who work collaboratively to provide routine and preventive care-as well as direct access to care when the patient has a serious health concern or is managing multiple chronic diseases. 

Budden likes to think of herself as an inclusive leader and hopes her team agrees with that assessment.

“I’ve always tried to encourage a culture of collaboration and innovation, and I think one of the best ways to do that is to try and provide as many opportunities as possible for every employee to feel like they have a voice,” she says. “Over the past year, I held 17 listening tours across Priority Health’s multiple campuses throughout the state to receive feedback from all employees, personally.”

In the meetings, there are open discussions about what is going well and what needs improvement. She also encouraged employees to share their ideas about how Priority Health might be able to better execute on the company’s vision.

“Feedback was analyzed from every one of the sessions for our executive team to consider-leading to improvements to today’s operations, as well as new opportunities,” Budden says. “My philosophy on innovation has always been ‘think big, start small, adjust fast, grow to scale’ and that’s the approach I’ve tried to instill in my team.”

When not at her job, Budden likes to spend as much time with family and friends as possible. An empty nester at home with her husband Doug, with their children Megan and Mitchell off working on their own education and careers, the couple likes to golf, hike, and enjoys all types of outdoor activity.

“One of the things that I really enjoy is mentoring. I personally benefitted from having a couple of wonderful mentors over the course of my career, so I try and work with young women each year- offering advice and support, hoping to provide them with some guidance to help them along in their careers,” she says. “One of the pieces of advice that I share from my own experience is that sometimes you have to be bold and take a chance.”

That’s what Budden herself did when she made the risky decision to leave a good job at a large insurer, after many years with the same organization, to pursue an opportunity with Priority Health.

“There were certainly challenges along the way, but I’ve never regretted that decision and every day I’m thankful that I had the courage to make that move,” she says. “The future is very bright for Priority Health. We have a great team and a fantastic culture and I genuinely believe that we are helping people improve their health. We’re financially stable and well-positioned for continued growth.”

Keith Loria is an award-winning journalist who has been writing for major newspapers and magazines for close to 20 years.

Joan Budden has created a culture at Priority Health, the No. 2 health insurer in Michigan, that encourages and rewards innovative thinking.

Featured Exec Joan Budden: President and CEO at Priority Health

It’s like “dÃ©jÃ  vu” all over again! This phrase summarizes the world of pharmacy in 2019.

As the cost and use of pharmaceuticals is now on the front page of newspapers and a top priority for employers, government, and individuals, some people think that this is a new phenomenon. However, drug costs have been discussed and analyzed for decades. As you plan for 2020 and beyond, here are some key questions to consider:

1. Who is the customer for pharmaceuticals and pharmacy services?

The customer is changing from a physician-centric to a patient-centric world. 

2. What are appropriate pharmaceutical pricing strategies?

Employers are questioning the value of new drug treatments and their price. As patients pay more of the cost of these expensive therapies, drug companies are trying to develop value-based contracting ties to outcomes to address the cost problem.

Drug companies are also launching more “specialty drugs” that are covered under the medical benefit, so these drugs cannot be managed.

The current conversation around the future of rebates is interesting, but drug companies will always discount their products or purchases that can drive market share.

As prescription dispensing is increasingly handled by automation and pharmacy technicians, pharmacists will need to manage a patient’s drug therapy and be connected to others on the healthcare team (e.g., physicians and homecare providers). Using information technology can enable timely communication.

Yes. As companies like Amazon impact the drug distribution model for pharmacy and reshape the consumer experience in buying prescription drugs, pharmacy needs to invent care models to remain relevant.

5. What is the value of pharmacy benefit management (PBM) companies? 

Created in the 1990s to consolidate purchasing power for employers and health plans, PBMs have done a nice job getting discounts from pharmacies and drug companies to lower the cost of the pharmacy benefit. Serving as the middle man between drug companies and pharmacies, PBMs have also amassed large databases of pharmacy claims data to analyze drug utilization and track financial performance. They used this role to “manage” the cost of the pharmacy benefit while simultaneously creating new ways to create profits for themselves.

PBMs are currently selling commodity services (e.g., pharmacy claims processing, pharmacy network contracting,  and drug rebates) to employers and health plans.

As the focus for drug cost management moves to the drugs covered under the medical benefit, PBMs will try to position themselves to manage these medications.

6. What technology enabled services will impact pharmacy?

As pharmacies strive for greater efficiency, two technologies are emerging that ensure every patient is receiving the right medication in the prescribed dosages: (1) using digital imaging makes it much easier and faster for the tech and pharmacist to verify the prescription and (2) improvements in machines specifically engineered to count dosages ensures that the pill count is correct.

Technology such as telemedicine extends pharmacy services to the internet. Individuals in remote locations can fill prescriptions that can then be mailed to their location.

How to Successfully Transition to Value-Based Care

Pharmacies will increasingly use analytics such as EHR (Electronic Health Records) systems to gain a better picture of the overall health of the patient and in turn provide better services to its customers. In addition, pharmacies will use business analytics to identify customer choices and take action to improve its brand.

Pharmacies will be impacted as consumers embrace technologies (devices and applications) that give them greater access to relevant information. For example, technologies that provide consumer awareness of drug pricing disparities between retail pharmacies will impact their decision on where to get the prescription filled.

7.  What is a managed healthcare executive to do?

A forward-thinking healthcare executive should have a process to scan the industry for innovative applications for consumer-centered healthcare and be willing to make incremental strategic investments that can benefit their members.

For example, you need to focus on lowering drug costs by having a “state of the art” fraud, waste, and abuse program.

Redefine the role of the PBM in your organization and focus on total cost care benefits when approving new drug coverage.

Perry Cohen is an editorial advisor for 

 and is Chief Executive Officer, The Pharmacy Group.

How to manage drug cost in a value-based world.

Seven Pharmacy Questions to Consider for 2020 and Beyond

Hospital pharmacists are not unlike pharmacists in other practice settings. Their primary objective is to ensure that patients experience safe medication use.

Beyond that purpose, however, the role of hospital pharmacists (also known as health-system or clinical pharmacists) encompasses a broad range of duties with the ultimate goal of providing quality care during an inpatient stay, ensuring a seamless transition of care, and reducing the number of medication errors.

Hospital pharmacists consult on diagnosis, examine patient charts, conduct patient evaluations to recommend a course of treatment, and choose the appropriate dosing of medications and evaluate their effectiveness.

“In health systems, pharmacists are more involved with direct patient care than ever before,” says Norman Tomaka, CRPh, a clinical consultant pharmacist in Melbourne, Florida. “There’s an incredible opportunity for pharmacists to improve patient outcomes. I see that happening more and more.”

With the continued trend toward value-based payment models, hospital pharmacists are taking an active part in efforts to reduce readmission rates.

“The role of pharmacists in the hospital is shifting from a distribution-centric model to more of a service delivery focus,” says Eric Maroyka, PharmD, BCPS, director of the Center on Pharmacy Practice Advancement section for the 

American Society of Health-System Pharmacists

 (ASHP). “They’re part of an interprofessional team that may cut across different settings of care. Some of this is driven by a move to value-based care, such as CMS’ quality measures and readmission targets.”

The suggested pharmacist-to-patient ratio for optimal care is about 1-to-30 (1-to-20 in the intensive care unit), notes Kimberly A. Boothe, PharmD, MHA, system director, pharmacy services for 

 in Fort Thomas, Kentucky. (The traditional pharmacist-to-patient ratio is in the 1-to-50 to 1-to-100 range).

With fewer patients to treat, hospital pharmacists can examine patients more holistically for both acute and chronic conditions.

Acutely, a patient is admitted with signs and symptoms of emerging sepsis, although the lab work initially seems fine. Hospital pharmacists are knowledgeable about those signs and symptoms. They can identify a drug that may be harmful if not adjusted to compensate for acute changes in kidney function because of emerging sepsis.

“A hospital pharmacist can take steps to communicate with the nursing and physician team about a dose adjustment or preemptively recommend discontinuing a medication,” Maroyka stresses. “They can make proactive changes based on evidence instead of reactive changes later that will unnecessarily extend a patient’s hospital stay.”

How Health Systems Use Pharmacists to Reduce Readmissions

For patients with chronic conditions, hospital pharmacists can collaborate with physicians to manage disease states such as hypertension and chronic obstructive pulmonary disease, mainly through patient education and counselling, drug safety management, medication review, monitoring and reconciliation, detection and control of specific risk factors, and outcomes.

These examples of interactions show the value of the hospital pharmacist participating in rounds as part of the care team.

“Many times, the body stresses when someone is in the hospital,” says Brook DesRivieres, PharmD, MS, a member-spokeswoman for the 

 (APhA). “What works at home may not work in the hospital. Hospital pharmacists can make sure prescriptions and doses are clinically appropriate.”

DesRivieres describes the hospital pharmacist as a watchdog. “We’re the safety net,” she points out. “A provider may order a drug therapy, but it may not be administered until the pharmacist does a safety check. That’s the biggest contribution pharmacists make in the inpatient setting.”

Medication management has many gaps that, if not closed, could result in an adverse event for patients. Those gaps become more noticeable-and potentially more life threatening-during a transition of care from the hospital to home, a rehab or skilled nursing facility, or other care setting. Hospital pharmacists coordinate post-discharge care to prevent adverse events.

At discharge, pharmacists ensure there is an accurate and updated medication list communicated with patients and their providers. In certain cases, pharmacists will check to see whether patients have access to the pharmacy and a way to pay for the medications. Care coordination may be done with the servicing outpatient pharmacy.

“The pharmacist can determine whether there is a reason that a medication is no longer indicated and be discontinued,” notes Erika Thomas, MBA, BS Pharm, director of the Inpatient Care Practitioners section for ASHP. “If the patient is elderly and at risk for falls, the risk and benefits of certain medications must be evaluated.”

Transition of care is important for the health of the patient and because of the changeover from fee for service to value-based payments. More than 2,500 hospitals nationwide will receive reduced reimbursement because of high patient readmission rates during fiscal year 2019 (ending September 30), according to the CMS.

“Readmissions will impact the bottom line,” Tomaka maintains. “Reimbursements are lower due to readmissions. Hospital pharmacists can collaborate with community practitioners, including primary care physicians, nursing home agency, and home healthcare, so there is a medication management plan carried out when patients leave the hospital to prevent readmissions.”

Numerous studies show hospital pharmacists substantially contribute to safer medication use by collaborating with other providers, and they improve the quality (reduced medication discrepancies) of admission and discharge reconciliation by exercising oversight.

Further studies document that pharmacists identify a significantly higher number of medications taken per patient, including more over-the-counter and herbal medications, compared with nurses, and they contact patients’ outpatient pharmacies significantly more often than nurses.

Fewer errors are found when a pharmacist, rather than a physician, completes a patient’s medication reconciliation during a hospital stay, 

“There has been lots of research that documents the important role of hospital pharmacists,” Boothe stresses.

Data at St. Elizabeth Healthcare show a reduction of errors from 2.8 discrepancies per patient to 0.5 discrepancies per patient with a pharmacy-assisted medication reconciliation process with the addition of medication history technicians and a pharmacist reconciliation review.

Hospital care is complex, and there are multiple opportunities for miscommunication-both in the hospital and post discharge. Hospital pharmacists are trained to circumvent miscommunication. By doing so, they help ensure a quality patient experience.

“Hospital pharmacists must move beyond dispensing and into more clinical areas,” says Melanie R. Smith, PharmD, BCACP, DPLA, director of the Ambulatory Care Practitioners section for ASHP. “This increases patient access to care, while also expanding the role of the pharmacist on a healthcare team. All of which helps to improve the patient care experience.”

Ken Krizner is a freelance writer based in Cleveland, Ohio. 

Why hospital pharmacists are playing an increasingly-large role in patient care and why their involvement can boost medication outcomes and reduce errors.

Hospital Pharmacist Role Expands in Patient Care

Today’s healthcare consumers want a seamless digital experience, one that allows them to be an active participant in their healthcare. The problem is keeping up with the rapid changes that technology offers and making sure the capabilities you are offering to customers aren’t obsolete before they are up and running.

The question is, how do you stay ahead of the game? While it’s nearly impossible to predict what new technologies are coming up, cloud technology offers a flexible and agile solution. The key is knowing what your customers want and what kind of model your organization will be comfortable with.

 shows that 53% of healthcare businesses take many months to a year to integrate technology changes into their existing systems. That’s because 62% of them report using between two and 10 different customer-facing software systems. Roughly one-quarter of healthcare leaders responding to the survey weren’t even sure how many software systems they utilized.

For these reasons and many more, healthcare companies are looking to simplify their digital solutions and create a better experience for consumers, and one that can change more swiftly with the rapidly changing technology landscape. The report goes on to note that 58% of companies in the survey planned to consolidate technology platforms for simplicity, 49% were looking to improve agility, and 43% were looking to migrate to cloud-based applications to achieve these goals.

With so many cloud-based services to choose from, the question then becomes, how does one choose the right fit and stay ahead of the game?

What is cloud technology and why do I need it?

Cloud technology is used in so many customer-facing systems across industries and is a way for a company or service provider to interface with consumers using web-based tools and applications, rather than through an in-house server. Building and maintaining in-house technology can be expensive, time-consuming, and quickly become obsolete.

Kevin Riley, senior vice president and general manager at 

, a developer of industry-specific cloud and mobile software, in San Francisco, says cloud technology is the key to digital transformation.

"You're going to have to adopt a technology, and that technology should be cloud,” Riley says. "Regardless of what problem you're solving for, if you're not buying cloud technology, you're buying an expensive problem."

Cloud technology takes away the burden of maintaining an in-house system by letting someone else with probably more expertise build and host the system not to mention deal with security.

Six Healthcare Technologies Coming in the Next 10 Years

Digital transformation is being driven by several factors, Riley explains, and all of these set the stage for the healthcare industry to adopt cloud technology. The first is customer experience. Bad customer experiences have put the health insurance industry in particular at the bottom of the customer experience scale, Riley says. That doesn't mean, however, that the healthcare industry should rush into creating a lot of technical debt to improve their customer service experience.

"Modern day vendors already have customer experience people on staff," Riley says. "Work with vendors that are telling you they can change your customer experience."

The second driver of digital transformation is product innovation. It's important to be able to stand out in the products you offer, and to have the technology to bring those new products to market quickly, Riley says. Top startups use lean technology to bring new products to market and test distribution channels without high overhead costs, Riley says. Utilize vendors who have these systems in place rather than recreating the wheel.

Another key to digital transformation is making sure that you are using a vendor who offers straight-through automation or processing Riley says.

"Can the vendor help prevent partner fatigue? Is the process tedious or attractive? Is it end-to-end and does it look unified?" are key question to ask when reviewing a vendor's process, Riley says.

Finally, companies should seek out cloud vendors that provide application consolidation, Riley says. Some health plans have hundreds of apps to manage, and a good cloud vendor will be able to help with that.

Each cloud vendor offers similar services, yet each have their niche, as well. Some might have stronger customer service elements, while others might excel in healthcare-specific services.

Riley says it’s important when seeking out a cloud vendor to find one who has customers with similar service lines to yours. The ideal vendor will have worked with other companies within your industry and are well-established and well-funded enough that you can be sure they will stay in business and aren't a fly-by-night startup.

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It’s also important to find out how willing and able that vendor is to create new products and services to meet your unique needs. For this reason, Riley says leaders should always question accessibility when choosing a cloud vendor.

"How much access do you have to the people that think about and create the product, and can you drive product design?" Riley says. "People are building software now using agile technologies. The software never stops being developed. The only way to judge that is to see whether you have access to influence the people who control what gets built." 

Know what you want and what's being offered

, an international process transformation company, says there is a lot of confusion around cloud-based services in the healthcare industry. The first step to knowing what you need is to really understand first what you want to achieve, and second what level of service is offered by a vendor. Hughes says he often shares with his customers an analogy about pizza.

"If you want pizza, you've got choices. You can make it from scratch with flexibility and control, but not with scale. You have to pick a kind and stick with it," Hughes explains. "That model is like an on-premise model where you have everything in-house to manage technology and infrastructure."

The next option, Hughes says, is to buy your pizza from a store. "Frozen pizza has everything you need, but you still have to cook it," he says. "That is more like infrastructure as a service. It's the most basic way, where you just use technology for storage and computing."

There are many factors to consider when choosing a cloud vendor. Learn how you can pick the best fit for your organization and stay ahead of the curve.

Managed Healthcare Executive June 2019 Issue

What You Need to Know About the Vaccine Pipeline

Featured Exec Joan Budden: President and CEO at Priority Health

Seven Pharmacy Questions to Consider for 2020 and Beyond

Hospital Pharmacist Role Expands in Patient Care

Cut Through the Cloud Vendor Clutter

Seven Pharmacy Regulations Health Execs Must Watch

Eight Ways to Help Patients Navigate Healthcare Costs

Managed Care Pharmacy Survey 2019