Our services for the life sciences and healthcare industry Listening to your needs

Transcription

1 Our services for the life sciences and healthcare industry Listening to your needs

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3 Introduction Healthcare and life sciences organisations are under enormous pressure in today s market environment, characterised by evolving regulations, shifting demographics, rising patient expectations and the quest for improved efficiencies. Future key challenges include: Shifting demographics, resulting in ageing populations Consumerism and rising costs of healthcare Increases in public health spending and changes in finance and reimbursement policies Increasing influence of emerging countries Convergence of different life sciences and healthcare sectors Difficulties attracting and retaining skilled workforces Requirements to respond to new European regulations Necessity to better manage and exploit health information, increasing in number and complexity Healthcare and life sciences in Luxembourg The Luxembourg healthcare system is among the most comprehensive systems in the world, offering virtually unrestricted access to the Luxembourg population. It also ranks in the top five countries per-capita healthcare expenditure in the world. Strong financial and political support over the years has enabled the Grand Duchy of Luxembourg to develop a strong life sciences and research centre. Life sciences in Luxembourg represents an emerging and rapidly evolving market with significant investments being made, in order to drive innovation and commercialisation of, inter-alia, diagnostic and therapeutic tools. The promotion of life sciences focuses primarily on: Biotech companies Research institutions The University of Luxembourg Private laboratories and foundations Multidisciplinary approaches and partnerships (e.g. personalised medicine solutions, systems biology) Our services for the life sciences and healthcare industry Listening to your needs 3

4 Our clients and service offering Our practice and expertise The Deloitte Touche Tohmatsu (DTT) Life Sciences and Healthcare (LSHC) industry group with LSHC specialists from DTT member firms, is comprised of more than 5,400 professionals in over 45 countries. Their understanding of the industry s challenges and their ability to quickly respond with integrated, comprehensive services put the DTT member firms in a distinct position to help their clients. These professionals can help companies in promoting their services and improving the quality of care, while they create and sustain longterm profitability. The Luxembourg firm has a team of professionals with broad industry expertise working in various fields within the LSHC industry. It has recently been strengthened through projects in organisational, human capital and IT areas. All of the ten largest pharmaceutical manufacturers Leading global public and private healthcare services entities and companies All of the ten largest biotechnology companies DTT member firms provide professional services to More than 80% of the life sciences and healthcare companies in the 2011 Fortune Global 500 All of the ten largest medical equipment manufacturers Almost 80% of the life sciences and healthcare companies in the Fortune U.S.100 Our clients Hospitals Long-term care institutions Home-care organisations Professional bodies Bio-cluster actors Research centres Laboratories Pharmaceutical sector entities Governmental bodies Non-governmental organisations Our services Audit services CFO and Tax services Corporate social responsibility Developing partnerships Human capital services IT services Learning and education services Marketing and communication Organisational transformation Patient experience improvement Quality management Risk management 4

5 Audit services The legal requirements for public sector entities have been reinforced with recent laws (introduction of, for instance, the Plan comptable normalisé ) and healthcare providers have to adapt their accounts to these regulations. Due to restructuring or strategic changes, providers are also impacted by numerous other changes (mergers, global budget envelope, and organisation of certain activities at the national level). Furthemore, in times of economic downturn and an increasing demand for sustainable development, the financial impact and the performance of investments and projects in the life sciences and healthcare industry need to be measured against defined and tangible standards of efficiency and effectiveness. To assist our clients in complying with regulations, we offer several comprehensive service solutions including: Assistance in compliance with reporting standards, especially when modified Performance audit, monitoring and (ex-ante and expost) evaluation services Auditing of annual accounts Internal audit Attestation for public sector Conducting due diligence reports prior to mergers Compliance reviews Design/review/implementation of corporate governance Definition and implementation of KPI's Our services for the life sciences and healthcare industry Listening to your needs 5

6 CFO and tax services Finance management Penetration of generics, changing patterns of consumer behaviour and new regulations are forcing healthcare and life sciences organisations to reduce costs and focus on delivering high quality services. The pressure on costs will lead to the implementation of new organisational models characterised by more analytical and value adding activities and a higher level of shared processes. In order to face these challenges, most companies need to focus on: Optimising financial services, through defining adequate target operating models Establishing a performance management system, based on costing models, planning and dashboards Management of working capital Efficient supply chain management Controlling development costs Infrastructure optimisation Deloitte can help healthcare and life sciences organisations with: Designing and implementing Target Operating Models (including Shared Service Centres) Value added benchmarking analysis Financial organisation and process review Outsourcing advisory Dashboard implementation Business Intelligence implementation Planning, budgeting and forecasting Activity based costing Analytical accounting The law of 17 th December 2010 introduces the obligation for hospitals to use analytical accounting in order to identify, for example, costs per treatment/service but also to be able to compare costs with other hospitals and thus improve transparency of hospital-related costs. To improve comparability between hospitals there is also a strong need to standardise accounting rules and methods. We assist healthcare providers with the following services: Support for the implementation of new analytical accounting requirements Implementation of standardised accounting rules and methods Tax services Constantly changing tax regimes increase the industry s complexity and requirements on a local and global scale. Poor tax management can significantly impact business costs and cash flow. Therefore, tax reporting, tax risk management, transfer pricing, VAT and tax planning strategies represent critical areas of focus specifically for entities in the life sciences industry. Our subject-matter and industry experts provide support with the following to help you notably be compliant but to position yourself one step ahead of competitors: Global business tax services Business tax Private company services Cross-border tax International tax Merger and acquisitions Transfer pricing Indirect tax Customs and global trade VAT optimisation and recovery IP box regime 6

7 Corporate social responsibility The Luxembourg ESR (Entreprise Socialement Responsable) label is one of the most advanced and comprehensive CSR labels in Europe. It helps to ensure continuous improvement approach by providing concrete examples and proposing clear action plans. It supports organisations in building a competitive advantage through alignment on Corporate Social Responsibility (CSR) market trends and good practices. As a communication and marketing tool, the label enhances brand visibility and reputation towards clients and institutions. Companies are under pressure not only to excel in their core business but are also under increasing pressure from the public and as a result of new legal requirements to show their corporate responsibility DNA: Building a competitive advantage through effective Corporate Social Responsibility (CSR) management Aligning with organisations that have already obtained the label and use it in all internal and external campaigns Making public the organisation s CSR actions at limited cost and effort Building and securing a high brand image and reputation Enhancing the company s ability to attract and retain critical talents Maintaining good relationships with main stakeholders (e.g. shareholders, clients, employees, unions) Managing your carbon footprint and more broadly climate change challenges Certification services in collaboration with INDR: review by a Deloitte expert of responses to the self-assessment questionnaire Consulting services: assistance in the definition of concrete improvement plans to enhance the CSR maturity level Carbon management services based on the Bilan Carbone methodology. Sustainable estate services to help you to deliver cost and carbon savings throughout your estate and operations Water Stewardship services to support the management in a sustainable and cost efficient manner of your water consumption Our services for the life sciences and healthcare industry Listening to your needs 7

8 Corporate finance Developing partnerships Due to significant competition and cost pressures, organisations, in the life sciences sector, are increasingly compelled to focus on efficiency gains to maintain their financial situations. In that context partnerships of all sorts (from joint ventures to mergers and acquisitions) are emerging. Deloitte offers consulting services tailored towards business development, corporate strategy, financial, legal, academic, and research and development professionals including the following: Identification of potential partners Complete assistance over sale/purchase transactions Optimisation and exploitation of synergies Assessment of different alternatives and definition of business plans Managing alliance formation, the lifecycle of the alliance, and deal valuations by business intelligence tools Advisory services on the execution of business development strategies, negotiation of alliances, and evaluation of existing partnerships Portfolio analysis and optimisation and outsourced business development Leveraging of the Luxembourg landscape of bioclusters, private equity, IP regimes and venture capital Deloitte Recap LLC Deloitte Recap LLC is a market innovator and industry leading authority on the analysis of biopharma alliances, valuations, and analysis of clinical developments. Deloitte Recap provides consulting and advisory services backed by data-driven solutions to help support decisions around : Alliance formations, alliance management, royalty determinations, and deal valuations help support decisions around Clinical development, regulatory performance, termination, and benchmarking Human capital advisory services One of the most valuable assets of a company is its talented workforce. Recruiting, retaining and developing skilled people are key factors for success. Given the healthcare and life sciences industry s overall complexity, the talent strategy needs to be adapted to their specific business challenges, notably: Aligning HR strategy to business objectives and managing changing skills requirements Moving from personnel administration to strategic HR Improving productivity while reducing HR costs and containing operational risk Developing a real performance culture Attracting key talents in a very competitive environment Retaining critical workforce in an environment of organisational changes, post-merger integrations and labour cost reductions Adapting work solutions to employees expectations Building an attractive rewards strategy Deloitte offers human capital services which include: HR transformation and technology Optimisation of HR processes Competency management and job design development Performance management model/system design Recruitment for external clients (executive search and selection) Reward models definition Talent sourcing and development Leadership development Strategic workforce planning, including succession management and resources planification Post-merger integration assistance on organisational, HR and change level implementation of HR solutions Change management to support organisations transitioning towards a new structure and/or environment 8

9 Audition for talent rather than skills to perform roles rather than jobs. Fred Lee Our services for the life sciences and healthcare industry Listening to your needs 9

10 IT services There has never been a more important time for organisations to ensure that their technology portfolios support key business strategies. Healthcare and life sciences companies have been dealing with an increasing volume of market data and patient information to process and manage. Companies therefore need to be able to handle increasingly complex applications simultaneously and in an integrated manner and to ensure adequate security of electronic data while also taking into consideration the strategy, constraints and business needs of the organisation. From this perspective, ehealth can be used as an overarching term used to describe the application of information and communication technologies in the healthcare and life sciences sector. We provide services in the following areas: IT infrastructure and security System integration and development E-health strategy development and implementation, including notably Network security assessment Security management and policy development Business continuity plan Identity and access management Solution development Architecture and integration Support in implementing proper data management (governance, IT platform) and in a better use of information in order to optimise operational efficiency (KPIs, reporting standards, advanced analytics) Learning and educational services In a competitive environment, the ability to develop and train your employees is a key business imperative. The need for training and education will become more important in the future due to the various challenges of the healthcare industry, such as: Staff shortages in certain occupational groups (e.g. highly qualified medical personnel) Increased competition for talent Need for skilled and qualified labour forces; given current demographic trends, this will require upskilling and reskilling of individuals to be able to fulfil highneed sectors Considerable budgetary constraints in training programs, exacerbated by recent economic crises, requiring rationalisation of curriculum content and delivery modes Need to maximise impact and efficiency of established training programs and adapt practices to future challenges We assist healthcare and life sciences organisations with a vast service offering that will support them in finding the most appropriate educational solutions, notably: Reviewing training/learning strategies and aligning them with institutional strategies and objectives Education on governance, organisation assessment and design, measuring effectiveness and performance, transformation of roadmaps and vendor rationalisation Talent strategy integration Course design and development Curriculum rationalisation and learning pathways development Diversification of training delivery models Train-the-trainer programmes 10

11 Marketing and communication Organisational transformation The directive 2011/24/UE on the application of patients rights in cross-border healthcare is the first step to open the European healthcare market. Thus, the competition in the healthcare sector will increase significantly in the future. Identifying new areas of business, making breakthrough discoveries and developing new products represents a small part of a successful life sciences organisation. In order to reach their customers, life sciences organisations face various challenges, for example developing more effective go-to-market strategies, optimising marketing campaigns, selecting the right customers, markets, products and channels to drive profitable growth. We assist healthcare and life sciences organisations with services that will support them in finding the most appropriate marketing and communication solutions like: Market analysis Marketing strategy, planning and consultation Marketing and communication best practices Medical marketing assessment Brand reputation (e.g. dealing with complaints, medical errors) Communication to customer/patients (informing patients about the medical intervention, the hospital stay, medical options, and providing follow up information) Employer branding Patient awareness, focused on the patient experience Measurement and optimisation of return on marketing, sales, services and promotional campaigns There is a constant pressure on healthcare and life sciences employees to deliver their services in an increasingly effective, faster and more cost-efficient way. Basic capabilities such as effective service delivery, integrated systems, optimised processes and procedures and increasing synergies of capabilities are at the heart of the transformation and evolution process that the healthcare and life sciences industry is undergoing in Luxembourg. To ensure optimal organisational transformation, Deloitte service offering includes: Reviewing and advising on adjustment of strategies, development of roadmaps and assistance on deployment implementation Optimisation of resources, processes and costs Competency centres modelling and implementation Guidance with ensuring the organisation meets the new legislative requirements on elements such as IT systems, governance,and skillsets Project Management Organisation (PMO) support on large scale projects Definition of alternative, collaborative working methods Designing and assistance with deployment implementation of new competency management and performance management frameworks Review of total reward policies, design of alternative options (such as job grading) Our services for the life sciences and healthcare industry Listening to your needs 11

12 Patient experience improvement The patient experience refers to the quality and value of all the interactions direct and indirect, clinical and non-clinical spanning the entire duration of the patient/ provider relationship. The current reform of Luxembourg s healthcare system addresses a significant number of improvements such as efficiency and cost. A sound understanding of patients expectations and healthcare behaviours are key elements to take into consideration in an increasingly competitive environment. To attract and retain patients, healthcare providers need to focus on: Understanding the five main attributes for patient expectations (personalisation, security, operating like a service provider, dependability and transparency) Delivering high-quality clinical services and healthcare solutions that are aligned with evolving behaviours and the needs of patients Organising and improving the patient experience through efficient clinical itineraries Retaining critical workforce and ensuring high employee engagement Adopting a patient perspective and improving the customer experience To ensure customer satisfaction and subsequently to retain patients, includes: Defining a clear vision statement and a corporate strategy that delivers an exceptional customer experience Converting the vision and strategy into a tangible action plan, with objectives relating to internal delivery capabilities Performing capability assessments and identifying gaps that the organisation needs to close in order to achieve the vision Assessing the maturity levels of the key drivers of patient experience (clinical quality, customer approval, operational/functional performance and employee engagement) Carrying out a comparative performance analysis to highlight deficiencies and key strengths that may impact patient experience Optimising clinical and non-clinical processes and itineraries When hospital personnel view their work as engaging the patient in a memorable experience, instead of just trying to give excellent service, the shift is one of substance, a true paradigm shift Fred Lee 12

13 Quality management Quality has increasingly become a primary concern for any healthcare provider and regulators have acknowledged this by reinforcing European and local legislation. These changes create an increasingly competitive environment which requires Luxembourg healthcare providers to have a well-defined 2-3 year strategic plan and underlying roadmap in order to position themselves as a preferred supplier and a key player in the healthcare sector. Quality is becoming a key differentiator and full compliance with the ISO 9000 and EFQM standards is increasingly important, as is the need for a well-considered and comprehensive performance management and monitoring strategy and for integrating qualitative and quantitative indicators. We assist healthcare providers with a vast service offering that includes: Benchmarking analysis on key aspects (including client and personnel satisfaction, process efficiency and effectiveness) Development of strategies, implementation of roadmaps and assistance in implementation Design of employee and patient surveys, results analysis, and development of recommendations/action plans Optimisation of resources, processes and costs Design and implementation of quality programmes Guidance with ensuring the organisation meets the new legislative requirements on elements such as IT systems, governance, and skillsets Our services for the life sciences and healthcare industry Listening to your needs 13

14 Risk management Growing regulatory and economic pressures are pushing executives of healthcare providers to rely upon high performing risk management function that objectively and proactively identify and help to address risk areas before they become an issue. The life sciences industry faces significant risks inherent in the business. Executives and directors must address the continual demands of a multitude of constituents - regulators, investors, partners, insurers, physicians, patients, lawyers, media and others. Meeting these needs adds complexity and as these risks converge and overlap, managing risk becomes simultaneously more difficult and more important. Healthcare and life sciences organisations need to focus on: Ensuring that sensitive information is properly monitored and under control Finding the best way to manage risks by an appropriate: organisation risk management IT system set of processes Optimising insurance costs Keeping control of both costs and quality Safeguarding brand image To help healthcare and life sciences organisations with quality and risk management, includes: Identifying high risk areas Elaborating and testing contingency plans Reviewing the compliance of organisations with quality and risk management best practices and regulations Defining risk management organisation, policies and processes Guiding risk management function on appropriate risk and quality supporting systems Providing individualised risk management coaching and training 14

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16 Contacts Life Sciences and Healthcare Luc Brucher Partner - Life Sciences & Healthcare Leader lbrucher@deloitte.lu Audit Sophie Mitchell Partner - Audit Leader somitchell@deloitte.lu Lichtfous Marco Partner - Life Sciences & Healthcare mlichtfous@deloitte.lu Karine Pontet Directeur - Life Sciences & Healthcare kpontet@deloitte.lu Public Sector, TMT, Middle Market Georges Kioes Partner - Public Sector, TMT, Middle Market Leader gkioes@deloitte.lu Tax Raymond Krawczykowski Partner - Tax Leader rkrawczykowski@deloitte.lu Advisory & Consulting Basil Sommerfeld Partner - Operations & Human Capital Leader bsommerfeld@deloitte.lu Joël Vanoverschelde Partner - Technology & Entreprise Application Leader vanoverschelde@deloitte.lu Roland Bastin Partner - Information & Technology Risk rbastin@deloitte.lu Laurent Berliner Partner - Business Risk lberliner@deloitte.lu Deloitte Luxembourg 560, rue de Neudorf L-2220 Luxembourg Grand Duchy of Luxembourg Tel: Fax: Deloitte is a multidisciplinary service organisation which is subject to certain regulatory and professional restrictions on the types of services we can provide to our clients, particularly where an audit relationship exists, as independence issues and other conflicts of interest may arise. Any services we commit to deliver to you will comply fully with applicable restrictions. Due to the constant changes and amendments to Luxembourg legislation, Deloitte cannot assume any liability for the content of this leaflet. It shall only serve as general information and shall not replace the need to consult your Deloitte adviser. About Deloitte Touche Tohmatsu Limited: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence Deloitte General Services Designed and produced by MarCom at Deloitte Luxembourg