How Pharma Leaders Can Fill Gaps in Health Equity Initiatives

Pharmaceutical industry leaders increasingly understand the importance of health equity – both to improve health outcomes and accelerate growth. However, realizing measurable impact has proven challenging.

From discussions with industry leaders, we’ve identified three primary reasons for this disconnect. First, there is often a lack of leadership buy-in. Achieving meaningful outcomes requires health equity to be a top-down priority.

Insufficient support from management leads to a second problem: limited resources. Health equity initiatives require significant resources to engage diverse communities across the country at scale.

Without understanding the needs of underrepresented populations, these initiatives are destined to fail. And those communities aren’t monolithic. Black communities, for example, have unique challenges city by city. Detroit is different than Philadelphia, which is different than Los Angeles. And even in the same city, the challenges across different neighborhoods can vary substantially. The most effective way to manage these nuances is to employ a hyperlocal approach that accounts for the unique makeup and circumstances of each community.

Lastly, many companies lack a clear definition of their health equity goals. It is critical for pharmaceutical leaders to identify where they can make the most impact – whether it’s increasing the diversity of clinical trial participants or undertaking research on diseases that disproportionately impact marginalized communities. These leaders must rely on clear metrics to set measurable goals and track progress. Establishing a measurement framework is essential to ensure proper alignment and accountability.

Failure to execute health equity strategies poses bigger regulatory and reputational risks than ever for pharmaceutical companies. Policymakers, shareholders, and patient advocacy groups are scrutinizing corporate equity commitments. The 2023 omnibus spending bill now requires drug and device sponsors to submit “diversity action plans” designed to address the historic lack of diversity in clinical trials. The pressure for industry leaders to prioritize healthy equity will only mount – and those that fail to do so risk impeding the success of blockbuster drugs, slowing innovation, lowering employee morale, and incurring reputational damage.

Of course, this isn’t the only pressure leaders are facing – accelerating drug development and demonstrating value to investors also top the list. But it’s a mistake to view addressing health disparities as an issue that can be solved in the short term. Ensuring that more communities have access to the highest possible standard of health takes time and requires building trust. Organizations that take the long view and employ a thoughtful approach have a better chance to make a real impact.

We see five crucial ingredients to success.

1. A health equity team that includes the heads of critical business units. Too often, well-intentioned health equity teams consist solely of employees in the philanthropic or corporate social responsibility arms of an organization. Assigning the responsibility of achieving equitable health outcomes to core business functions like finance or sales sends a powerful message that a company’s business goals are aligned with its health equity goals. Giving this group responsibility for regularly reporting progress to the board of directors can further embed its importance and ensure accountability.
2. A clear definition of health equity. To drive engagement internally and externally, pharmaceutical companies must locate their north star. What does success look like? How will the company know they’ve achieved their goals? For guidance, companies can reference a robust body of academic literature on best practices for aligning company goals with a community’s goals. Once that vision is set, companies must invite employees, investors, and regulators into the process. That means establishing two-way communication channels. Powerful tools like stakeholder pulse surveys allow companies to share progress and give stakeholders a forum to share ideas and enthusiasm.
3. An assessment of capabilities and gaps in resources. With a team in place and goals clarified, health equity teams need to assess their resources and capabilities. Many companies have long-standing relationships with patient advocacy groups, nonprofits, and government agencies they can leverage to further health equity goals. An assessment of existing programs is also necessary to identify any gaps in reach and impact. It’s crucial to identify them and anticipate future needs.
4. A commitment to a hyperlocal, community-tailored approach. Researching the inequities impacting individual communities must be the cornerstone of any health equity strategy. The goal is to understand the challenges and barriers that each community faces in attaining their full health potential. Acquiring that understanding, while at the same time building trust, requires establishing ongoing dialogue with key community stakeholders. The answers will vary from community to community. So, while research goals may be the same, the strategies to achieve success will need to be tailored based on the research findings.
5. A clear set of metrics to measure impact. Defining what data will be collected, that addresses desired outcomes and not just outputs, is key. Implementation of health equity initiatives must include clear KPIs. Only then will leaders be able to show progress toward their goals and assess performance.

Demands for health equity will only grow stronger. Communities want to see real change. Now is the time to deliver better health outcomes. Companies that put historically neglected communities at the center of their business goals can benefit not only reputationally as some have. They can also bring innovative discoveries and treatments to a larger market.

Contact Ichor's Healthcare Practice to learn how we can help you meet the evolving needs of patients, payers, providers, consumers, and the communities around them.