The U.S. healthcare industry is undergoing significant transformation. Stakeholders today must navigate complex trends, including technological advances, financial conditions, and changing patient needs, to build a stronger, more effective healthcare system for the future. As the industry looks to the future, here are some considerations to keep in mind.
As technology drives change in the industry, digital health has emerged as a key area of focus. Most health systems now have digital programs in place, and the shift to digital health is expected to grow and impact patient-physician interactions and care delivery models.
Meanwhile, artificial intelligence (AI) and machine learning (ML) are playing an increasingly important role in healthcare. While the use of AI/ML is still in its infancy, stakeholders are beginning to recognize the potential benefits of these technologies in their operations, including not only improving patient outcomes but also reducing costs by streamlining administrative tasks and enhancing resources to help alleviate labor shortages. Investments in AI/ML are expected to increase, reflecting the broader trend toward data-driven decision-making and personalized care.
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Financial conditions across the industry are mixed; some organizations report stability while others are grappling with financial uncertainty. Rising healthcare costs continue to cause concern for both providers and patients, with perceptions of affordability varying across demographic groups. This trend highlights the need for continued efforts to address cost-related challenges and improve financial sustainability, including opportunities to control non-labor costs. This is discussed in more detail in the article “Cost Reduction Trends in Healthcare.”
However, cautious optimism for a recovery is spreading as the health care industry emerges from severe financial strains caused by labor shortages, inflation, and the COVID-19 pandemic. The financial health of health systems that took a hit during the pandemic is expected to improve as performance improvement efforts, mergers and acquisitions, and revenue diversification strategies begin to pay off, as seen in stabilizing health system margins and growing managed care populations.
Specialty pharmacy services are also expected to grow in response to the increasing complexity of available treatments. However, challenges remain, especially in skilled nursing and long-term care. Profit pools continue to weaken as staffing shortages persist while facilities must meet the changing needs of a growing geriatric population. Additionally, payer segments are experiencing change, creating challenges for providers as Medicare and Medicaid Advantage plan participation increases, payer influence and power increases, and cost control initiatives and restrictions have led to a surge in denials.
Overall, the future of the healthcare industry is a time of cautious optimism, with technology, policy, and market trends expected to drive significant expansion and improvement. Looking beyond 2025, we expect to see further growth and evolution, particularly in ambulatory care settings, healthcare services, innovative uses of technology, and specialty pharmacy services. The industry will continue to navigate opportunities and obstacles, with a focus on improving margins, enhancing patient care, and making the most of technology.
Read on for more information on these trends, and get in touch with a Forvis Mazars expert today to find out how we can help your organisation prepare for the future.
