Supply and Demand Drug Shortage Causes: Patient-centric Business Model and its Application

Abstract

In this study, the authors have investigated supply and demand drug shortage causes and highlighted the collaborative business model in solving drug shortages. The aim of this research is to build a collaborative business model helping to investigate how to deal with drug shortages. The authors have included employee and patient relationship into collaborative business model. Following the analysis of the evolution of the term "business model", it is noted that the evolution of the term is closely linked to the development of B2(B2B) (McGlinchey and Toews 2017). In scientific literature there are mentioned more than 50 elements of the concept structure of the business model. In the study authors provided patient-centric business model and selected 9 main structure elements connected to the areas of key resources, key activities, and value system. The study consists of three parts. In the first one, the paper discloses the concept of a business model and the evolution of business models. In the second part, address the importance of links between distribution channel partners to solve drug shortage causes in distribution channel. The legal regulation provided in a good practice of supply of medicine in the chain and the right of the patients were highlighted to access to the goods and services. In the third part, the application of business model scenario in the pharma sector that might guarantee high level of protection of human health is presented. Herein several medical distribution channel scenarios are compared and their influence on drug shortage is presented. The research study is based on time horizon and event tree analysis.