Pharmaceutical
Costly clinical trials raise flags
According to a new report, rising clinical trial costs are increasing the focus on test subject recruitment and the usage of clinical trial service providers. Clinical studies account for about half of the billion dollar cost of drug development. Market researchers Piribo highlight the need for efficiency during the patient recruitment process, and more public education on the value of clinical trials.

Telecommunications
Battle heats up against cable
Phone companies have thrown down the gauntlet — with gadgets. The wave of wireless-landline-Internet services includes: a Verizon One phone equipped with a color screen that connects to the Internet, a plan that allows unlimited calling between an AT&T landline and a Cingular Wireless cell phone, and a Sprint Nextel cell phone that connects wirelessly to broadband Internet connections in the home or office.

Investment
Advice for the advisors: Focus on customer advocacy
The wealthy offer a prime opportunity for advisors as more seek professional help. A Forrester Research survey shows that by the end of 2004, just 50 percent of millionaires made their own decisions, down from 60 percent in 1998. Wealthy consumers also say reputation drives their choice of advisors.


Hospitals/Health Systems
Best hospitals care for and about patients
A study conducted by Press Ganey Associates concludes that hospitals that achieved excellence in clinical quality of care also earned high marks in patient satisfaction. The convergence of these subjective and objective measurements is even more relevant in the wake of emerging pay-for-performance policies, where hospitals compete for more Medicare reimbursements.

Banking
Banks join the HSA party
With a potential $75 billion in assets at stake, some of the country's largest banks, including Bank of America and Wells Fargo, are getting into health savings accounts. Consulting firm DiamondCluster International predicts that banks will earn as much as $3.5 billion in fees by 2010 from managing HSAs.

Mortgage
Consumers hesitant to use home equity
One in three homeowners expects to pay off their mortgage within the next 10 years, reveals a Ditech.com survey. At the same time, they prefer to use personal savings to finance "critical family costs" like health care before exploring home-equity line of credit options. The mortgage lender cautions this seemingly conservative approach could actually do financial harm, and consumers need to better understand their options.

Travel
Hotels court fickle "frequent" travelers
The coveted frequent travelers, who account for 44 percent of all hotel nights, are still leaving $22 billion to $27 billion up for grabs. According to consulting firm McKinsey & Company, these travelers belong to more than one loyalty program and spend less than half of their nights in their favorite chains. One way to win them over - personalize their rewards based on individual tastes and needs.

Automotive
Mailers focus on the customer
Inside Direct Mail reveals that manufacturers are now balancing flashy graphics with more customer-centric content. In addition to the regular service coupons, self-mailers include more personalized letters from managers, news on customers' specific car makes and incentives for customers to share more personal information. Mail volume in the industry has doubled over the past four years.

Insurance
Insurers push policies for long-term care
Though sales were down 25 percent last year, the industry is now optimistic thanks to new rules from Congress that tighten eligibility for Medicaid coverage of nursing home costs. Consumers will need an alternative, as the costs of long term care increase at a rate nearly double that of overall inflation.

Managed Care
Seniors seek Medicare understanding
Although about half of U.S. seniors say they are very likely to enroll in a new Medicare drug plan by May 2006, a recent Wall Street Journal Online/Harris Interactive Health Care Poll also reveals some challenges for health providers. The majority of seniors also find the new Medicare prescription drug benefit either somewhat (33 percent) or very (38 percent) hard to understand, while just 39 percent are somewhat or very confident that they will be able to choose a drug plan that’s right for them. They are searching, as more than half (53 percent) say they have looked for general information about the plan.