It’s good to be in healthcare

According to a recent McKinsey whitepaper titled “The future of healthcare: Finding the opportunities that lie beneath the uncertainty,” it’s good to be in healthcare in the US. And it seems that being a large company in healthcare is better (insert you favorite “size matters” reference here). McKinsey did an economic assessment across various parts of the US healthcare system (insurers, delivery systems, service vendors, and manufacturers & distributors) and found that margins increase with scale. No duh, but what’s interesting is how that scale is being achieved and, in a word, “complexly.” Yep, complexly. The major takeaway is that your organization needs to be agile and actively manage your portfolio across the value chain, not just in your core business. Oh, and they talk about Amazon too, because apparently you have to. It’s a rule now.