The Evolving Role of Product Managers in the Healthcare Industry

Product Management is one of the hottest functions today. In a 2020 LinkedIn survey, the product manager role was projected to grow around 24 percent each year and be one of the top in-demand roles. Over one-third of Fortune 100 Companies now have a Chief Product Officer, representing a 41% growth rate over the past three years. Unlike a few years ago, Product Management is now a clearly defined path for prospective candidates looking to enter the field. This trend is not just seen in the United States but also globally. Factors like the adoption of technology across industries, the dominance of big tech companies, and the growth of digital access are driving this strong momentum. A Product Manager’s primary function is to manage a specific product, including physical products, software programs, or other digital products. They are often called the “CEO of a product”. Their responsibilities include managing a product's design, development, and appeal to customers.

Product Managers need a strong combination of business skills, design skills, and tech skills. These skills are what attract people to it in the first place. But what does such a role look like in the healthcare industry, which traditionally has been managed by people with a strong healthcare background who might not necessarily have the previously mentioned design and technical skills? There is enthusiasm from people across fields to switch to the industry, but what does success look like for people without any core healthcare knowledge?

In the rapidly evolving world of healthcare, innovation is not just a buzzword but a necessity. We are out to explore the dynamic roles of different stakeholders for this year’s KBHC’s theme, ‘Innovating in the Evolving Healthcare Landscape’, and in this blog, we’ll see how Product Managers are pivotal in shaping the future of healthcare - a field where technology, business acumen, and patient-centric approaches intersect. I sat down with various industry professionals to gather their thoughts and further shared my own experiences from the field. It aims to shed light on the prospective career pathways for MBA graduates, both with and without prior healthcare or technology industry experience.

Introduction

The healthcare industry is a vast and complex domain continually adapting to technological advancements and evolving consumer needs. Amidst this evolution, the role of Product Managers (PMs) is gaining prominence, bridging the gap between medical expertise and business acumen.

Traditionally, the majority of the healthcare sector was driven by medical experts with limited intrusion from product managerial roles. However, with the digital transformation and product delivery frameworks sweeping across sectors, healthcare has embraced managerial expertise to optimize product development, delivery, and optimization. Product Managers in healthcare now play a pivotal role in ensuring that healthcare products, whether they be physical devices or digital solutions, meet quality standards, regulatory compliance, and alignment with patient needs and market demands.

Traditional Big Pharma and medical technology companies

In the realm of traditional big pharma and medical technology, giants like Pfizer, known for its innovative drugs such as Lipitor and the COVID-19 vaccine, Merck with its blockbuster cancer drug Keytruda, and Medtronic, a leader in medical devices such as pacemakers and insulin pumps, set the stage. Traditionally, people who managed the various Go-to-Market functions in these companies were termed as “Brand Managers” in the industry. Today the same role is called “Product Marketing Manager” (or still used interchangeably with “Product Manager” by some companies). They play a pivotal role in developing and overseeing the marketing strategies for various drugs and medical products. Their primary responsibility involves understanding and analyzing market trends, consumer needs, and the competitive landscape to position their brand effectively. A significant part of their role includes creating and executing marketing campaigns, both digital and traditional, to increase brand awareness and drive sales. Furthermore, product managers monitor and manage the brand's budget, track the performance of marketing initiatives, and adjust strategies as needed to meet sales targets and compliance with healthcare regulations.

Product Managers are tasked with understanding customer (could be patient, payor, provider) requirements and fulfilling them. This could include organizing focus groups with the community they serve. Healthcare product managers might perform market analysis, recognize unresolved issues, and introduce innovative solutions to the product range. 

Working closely with research and development (R&D) teams is crucial for the development and introduction of new pharmaceutical products. Pharmaceutical product managers play a key role in this process, contributing to various aspects from the initial formulation and design of the product to its final packaging and labeling.

A PM in these companies needs to be good at forecasting, roadmap planning, and launch strategy planning and execution. Core skills of strategy, marketing, and more often than not, pricing, are needed to be successful in the role. Due to the nature of the industry (i.e., a highly competitive marketing landscape), Go-To-Market execution is strongly driven by push rather than pull, especially for MedTech. For example, Siemens wouldn’t post a new ultrasound machine on their website and wait for orders to pour in, Siemens needs to create a go-to-market strategy for their new ultrasound machine and actively execute against it to ensure healthcare providers use their product. Similarly, Novartis wouldn’t distribute a new cancer drug to hospital pharmacies with the expectation that it will magically be prescribed and create an ROI, a company like Novartis needs to actively market and promote the product to ensure utilization.

Product Management responsibilities for big pharma and MedTech include conducting a comprehensive assessment of the global patient market for each product, gaining insights into existing alternative treatments and solutions, distinguishing these new offerings effectively, and fostering both awareness and confidence in the product's proven efficacy.

Digital health

For candidates looking for a more core technological role in the healthcare ecosystem, most immediate PM roles can be found in the digital health space. Digital health space involves navigating the intersection of technology, healthcare, and user experience. Professionals in this field focus on creating and managing innovative digital health solutions, from telemedicine platforms to wearable health trackers. Building a career in this domain typically requires a blend of technical acumen, an understanding of healthcare systems, and strong project management skills. Aspiring product managers often gain relevant experience through roles in healthcare technology and, by being abreast of evolving trends and technologies, position themselves for success in this rapidly advancing field.

I recently sat down with a Chief Product Officer of an established HealthTech startup, where we discussed how she was able to pivot from a healthcare consulting and managerial background to a product lead role. She emphasized that pure-play health tech companies are the spaces where the most impact can be made for someone who doesn’t necessarily have a healthcare background. In a similar vein, tech-enabled services at the provider side (like EHR services) where effective scaling is a strong mandate, benefit from tech-focused individuals.

Emerging role in supplementary functions and industries

In the healthcare industry, there is substantial innovation potential even beyond the aforementioned spaces. Across the spectrum, clinical healthcare services, health insurance, mental health services, provider administration and management are some other key areas where product management roles are still being defined and seeing success.

I was fortunate to work for a few months at a healthcare data exchange company in the product management function, before pursuing my MBA. This experience broadened my perspective on some of the supplementary functions and industries. For example, I witnessed first-hand how a company is revolutionizing healthcare insurance processing by leveraging AI automation. This ultimately allows for the pre-approvals cycle to be shortened, which allows for faster healthcare access for patients and higher utilization of the health providers.

Similarly, during my time at ZS, product management frameworks were used to create a revenue and contract optimization product for medical technology companies. The product was built to create additional value for MedTech companies and organize more analytical rigor to the current ecosystem that heavily relied on manual, non-analytical handling of such transactions.

Wellness and alternative medicine are other fields where product managers may find roles in developing and marketing natural health products, requiring knowledge of both regulatory landscapes and consumer health trends. During my time at the Kellogg School of Management, I’ve come across students actively pursuing business ideas at the intersection of digital solutions and alternative medicines to create value for consumers, which demonstrates the growing interest and trendiness of this facet of healthcare.

Skills required to succeed in the role

When compared to other industries, in the United States, regulatory scrutiny is quite intense for healthcare products, and for good reason. Therefore, having the knowledge and understanding of regulations and approvals gives an edge to anyone seeking such jobs.

A sophisticated medical device might have to comply with stringent wireless communication standards set by the FCC, adhere to patient privacy rules under HIPAA, meet health and safety regulations from the FDA, and address privacy issues per GDPR, among numerous other requirements – all in all requiring a diverse skillset from individuals.

The industry advisors I talked to highlighted the importance of finding leaders in the space who trust your passion. Even for people with a non-healthcare background, having a vision for improving the healthcare spectrum can tilt the scales in their favor. The need for strong core tech knowledge should not be underscored, although someone’s passion and a strong intent can compensate for the technical knowledge entry barrier. Most opportunities for pivoters (candidates who do not come from the healthcare industry) lie in the startup world in roles such as product management and operations.

Folks without any industry knowledge may initially start in roles that are more aligned towards market research, competitive analysis, or customer engagement, gradually moving towards core product management roles as they acquire industry knowledge.

Also, compared to the traditional industry PM roles, healthcare PMs need to be extra diligent in hearing customer feedback, reactions, and social media attention. The reactions to innovations, advancements, and reactions amplify quickly in the healthcare space given their core impact on human health, across various demographics and geographies.

However, the product lifecycle can be quite long in healthcare. Especially for novel drugs that have a relatively high possibility of failure. This lengthy process is arguably outweighed by the real-life impact on consumers, hence a candidate should be enthusiastic, but realistic in their approach.

Conclusion

The evolving role of Product Managers in the healthcare industry marks a significant shift towards integrating business expertise with medical knowledge. As the industry embraces digital transformation and consumer-centric approaches, product managers are becoming crucial in bridging the gap between technical innovation and patient needs. The rise of tech-driven roles within healthcare opens new horizons for MBA graduates, especially those adept in technology, regulatory frameworks, and market dynamics.

Success in this field requires not only a strong foundation in business and technology but also an understanding of healthcare’s unique regulatory environment. Moreover, healthcare product managers must possess a keen sense of empathy and diligence, as their decisions directly impact human health and well-being. This career path offers a rewarding journey, blending the excitement of technological innovation with the fulfillment of contributing to improved healthcare outcomes.

As we conclude our exploration of Product Management in the healthcare sector, it's clear that the role is more than a job title; it's a mission to innovate in an industry that touches every life. In this evolving healthcare landscape, Product Managers emerge as the architects of a future where technology and empathy converge, crafting solutions that not only advance medical practice but also resonate deeply with human care and compassion. We’re excited to bring more of such thoughts and perspectives in the upcoming KBHC conference. See you there!