DISEASE AND WELLNESS MANAGEMENT FIRMS!?
In 1993 Eli Lilly publicly announced that it was turning itself from a drug firm into a "disease-management" one. The idea is that rather than focusing a company on a specific part of the health-care market, such as drugs or hospitals, a firm should deal with all aspects of a disease. Chronic diseases that require lots of attention could produce the biggest savings (and hence profits). Eli Lilly has launched five disease-management programmes, for asthma, pulmonary disease, depression, diabetes, and ulcers. Several small firms are already thriving in "disease management"...
The "wellness-management" school is led by KPMG and Andersen Consulting. They believe that the disease-management approach fails in several respects. Health care involves maintaining health as well as treating diseases; patients often suffer from several diseases, which cannot easily be isolated and managed separately; and "disease-management" is an unappealing notion for companies that want to associate themselves with health, not illness.
Instead, companies that promote "wellness" should organize their product portfolios around groups of patients, trying to deal with all their medical needs. Some drug firms are doing this.




