Sascha Ballweg, Manuel Grossman, Kirill Haar, Florian Scherer, Maximilian WĂźhr
Economic Trends in Diabetes Care The increasing cost related to diabetes care threatens the sustainability of healthcare systems and economic prosperity. The rising global prevalence of diabetes has severe economic implications for healthcare systems, healthcare providers, and society. This chapter deals with recent economic trends and developments as well as the status quo of multinational corporations in diabetes. While the geographical focus lies on Europe, facts and drivers on all continents were considered. With the goal of making healthcare better for diabetes patients in mind, the conducted research focuses mainly on cornerstones and limitations for the evolution of new innovations. Consequently, we identified six economic trends that will impact the development of diabetes care in the upcoming years. Firstly, on a macro-level, we observed a rising prevalence of diabetes throughout all parts of the world, especially for T2DM. On the one hand, rising living standards lead to more obesity; On the other hand, a longer life expectancy leads to an aging society, with older individuals being at a higher risk of developing the disease. This has severe economic implications on healthcare systems, as the absolute costs of treatments are rising significantly. In some countries, diabetes already accounts for 20% of the total healthcare cost [235].
Staying on a macroeconomic-level, we can see an increase in income inequality. This development causes difficulties in financing a public healthcare system and threatens the prosperity of the economy as a whole. This situation is particularly challenging for low-income households, which struggle with the financial consequences of diabetes care. Homecare solutions could compensate the decreased accessibility induced by rising inequality. Since projections suggest a continuation of this development, the problem of rising healthcare costs is predestined to not only be a demanding question for economists, but one of the big societal challenges in the future. On an industry level, we identified significant growth in the market for diabetes related goods and services. The global market sizes for products such as glucose monitoring systems increases steadily. Furthermore, the role of multinational corporations demonstrates how certain stakeholders can profit from the increased prevalence of diabetes. During the last years, large multinational companies were able to significantly increase their market shares, which accelerates the consolidation of the market. Despite the growing demand, margins of large pharma companies are decreasing due to intensified competition and a decreasing effectiveness of research activities.
Trend Trend
Scenario Scenario
Ideation Ideation
Furthermore, we see companies finding new opportunities in regions such as the Middle East and Asia. As societal changes have a significantly stronger impact in emerging markets compared to the Western World, the growth potential there is even higher. In addition, prices increase and diabetes prevalence is growing rapidly as healthcare systems become more sophisticated. Consequently, large global players use their advantage of an international infrastructure and focus resources on these areas. Finally, we assessed which emerging fields in the healthcare system might have an economic impact in the future. We identified the field of preventive care as one of the emerging areas that offers an answer to rising costs. Policy makers, insurance companies, and other stakeholders collaborate in the development of preventive care programs which target the overall health and fitness of the population. This is especially promising since approaches to tackle obesity not only reduce the risk of developing diabetes, but also many other chronic diseases. All trends taken together will profoundly influence the economic landscape of diabetes care in the upcoming years.
45