In today’s dynamic health care industry, health care providers are pressed to constantly adapt and innovate at an unprecedented rate while facing major changes in the applicable reimbursement systems. In such an environment, collaboration between health care systems and life science companies could provide health care providers a competitive advantage in the health care market, while simultaneously providing the life sciences companies with new opportunities to test their product and technology and create market demand. The ongoing COVID-19 pandemic has provided the most recent evidence of the benefits of collaboration between health care systems and the life sciences industry, as collaboration between life science companies and health care systems enabled these parties to jointly expedite medical research and combine technological and financial resources to quickly produce and distribute an effective vaccine to the general public, and to improve therapeutic treatments for COVID-19. Those collaborations not only contributed to financial success of the parties involved, but it provided an enormous health benefit to the general public.
This collaborative approach, however, can also be beneficial beyond the context of a global pandemic. Collaboration between health care systems and life science companies would enable these entities to combine extensive research, independent industry expertise, and financial resources together in pursuit of medical improvements and innovation within the health care industry. The willingness for these entities to combine clinical and technological information and financial resources would likely contribute to individual success in the industry and provide medical innovation and treatment to a wide variety of patients in need.
While there are many potential benefits to collaboration, health care systems and life science companies need to consider a variety of important regulatory and legal issues before they begin a collaboration. The health care and life sciences industries are both highly regulated and the impact of this type of scrutiny should be considered. There are several key issues that health care systems and life science companies should consider when evaluating a potential collaboration. Here we’ll examine these key issues:
Collaboration between health care systems and life science companies presents intriguing opportunities and can provide a range of benefits to both parties, but there are a diverse set of key issues both parties must be aware of before entering into such agreements. It is critical that the involved parties consider the different legal and regulatory obstacles a collaborative effort will face and take the proper steps to ensure each is adequately protected and in compliance with the applicable laws. If done properly, the parties can capitalize on the immense potential that collaboration between life sciences companies and health care systems can generate.
co-authored by: John-Thomas Theodore, law clerk
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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