The healthcare sector is going through an exciting period, although some industry leaders anticipate that uncertainty amid an accelerated growth in the aging population and rising prevalence of technology advancements, investments in infrastructure, increased labor costs, and evolving healthcare models.
By 2023, global healthcare spending is anticipated to increase at an annual growth rate of 5%, up 2.7% from 2014 – 2018. By 2030, the global population is expected to increase to 8.5 billion, up 0.8 billion from 2019. In simple terms, it means that meeting the healthcare needs of the people will most likely pose a challenge.
Spending growth containment & preventive healthcare
Healthcare systems are commonly seen as expensive and rather complex to operate. To bring costs down, governments are taking measures to contain the spending. Preventive health, for example, has proven it can improve cost efficiency via pricing models on MedTech devices and pharmaceuticals. Conscious decisions have been made in developing markets, one of them being to made low-cost medicine widely available for the people.
In developed markets, health systems are becoming more open to sharing information on cost for the products they purchase. Furthermore, measures such as evidence-based usage, international benchmarking, and generics are potent drivers bringing costs down. To optimize the mental and physical health of the patients, both private and public health systems are opting for population health management in the hopes of assuring continuous improvements in health outcomes via advanced technologies meant to prolong the population lifespan.
News ways for improving operational & financial performance
Whether they decide to stay independent or partner up, many health facilities are working towards improving financial and operational performance via new revenue-generating opportunities. Non-traditional players entering the market might play a big part in improving revenue growth. As digital health disruptors make their way to the top of the health funnel, by the end of 2020 we will be looking at a cloud and customer base platforms proving their worth with their user-friendly interfaces for conducting transactions and customer support.
On the other hand, industry incumbents are considering a different approach to digitalization. Many have begun developing capabilities around reshaping business models, empowering customers, and partnering with market disruptors to craft frictionless, seamless digital health experiences. New opportunities for developing public-private partnerships will emerge in the hopes of serving domestic markets and exporting platforms and value-added services.
Based in British Columbia, Canada’s own digital ecosystem (known as The Digital Technology Supercluster) pledged $950 million in funding to healthcare. Its purpose is to leverage analytics, visualization, and data collection to digitize the healthcare system.
Predictions for the future
By the end of 2020, the healthcare innovation model will manifest in different ways considering the aid advanced technologies are offering. Capabilities to provide early diagnosis via predictive analytics, easier consumer access via cloud-based platforms, and behavioral economics able to motivate engagement will lead to an evolution of healthcare models and systems.
A core goal of stakeholders should be to search for opportunities and become more open to collaborating with each other. To determine where investment can have the greatest impact, hospital leaders must spend their budgets wisely. Investing in virtual care technologies rather than expand the physical footprint could pave the way for driving sustainable, meaningful change in patient care. Rethinking combinations of workplace, talent, and technology are key drivers that enable health organizations to evolve and upgrade their ecosystem.
Sooner or later, it’s worth assuming that health will no longer be provided inside the traditional hospital or clinic. Many will resort to telehealth and virtual appointments, virtual clinical trials, RPM, and customer portals. To survive in the digital realm, training existing and future employees in technologies like cognitive intelligence, AI, and RPA is a fundamental step in boosting productivity and satisfaction in the long-term.