Healthcare Hurdles and Transformation
The United States has undergone a problematic two years for global health, which saw the advent of a global pandemic which fundamentally altered the functions of the nation, and resulted in changing health priorities for the nation. Although this was clearly the most significant health issue facing the nation in our lifetimes, the ways in which it affected the economy, and the health industry are likely to reverberate for the foreseeable future.
What form these shifts will take for the Healthcare industry is dependent on the actions of the healthcare organizations themselves, as well as government policies, and the continued aftermath of Covid-19 and subsequent vaccinations. However, the most relevant factor will be how willing the healthcare organizations are to embrace new technologies, strategies, and methods to address both new and old problems plaguing the industry.
issues facing the healthcare industry in the U.S. can largely be isolated to
include the issues relating to the continual Covid-19 pandemic, and many of the
previous issues that continually plague the industry. The latter group is
primarily limited to recurring issues within the healthcare industry, such as
the potential increases of government programs like Medicaid, and aspects of
the industry typically critiqued, such as a lack of clarity in pricing and the
increasing costs of healthcare generally. This category of problems is
increasingly notable when one considers the percentage of spending that is used
for healthcare purposes nationwide, and the potential increases which are
likely to occur as a result.
companies are likely to continue their cultural maturation by highlighting
social issues such as inclusion and diversity via internal procedures, as well
as through ensuring that such problems arising as discrimination in patient
care are highlighted and addressed.
saw healthcare spending rise from $3.81 trillion in 2019 to $4.01 in 2020. However, if the global trends
noted by the CMS continue, it is likely that this spending will continue to
increase, with the number reaching $6.19 trillion by 2028. However, whether or
not these projections prove correct will depend on a variety of issues and
policies. This includes the actions of various state and federal actors and the
methods they employ to address the continued economic impact of the COVID virus, as well as their work in encouraging the public to undergo vaccinations
and other precautions to prevent continued outbreaks. Additionally, the role of
innovative models could help to reduce these projections to more sustainable
levels if they are fully embraced by the world population and help to increase
the economic viability and stability of the healthcare industry.
One model which could present a solution to many of these problems is the value-based-care model. This model focuses on increasing transparency within the industry and allowing the patients to be more involved in their healthcare. In addition, this model has a focus on the provider in giving patients more specialized care, particularly with those who suffer from chronic illnesses which is typically a serious drain on the financial well-being and stability of such individuals.
Another related example is the care model innovation, which places further emphasis on patient autonomy and treatment. Although this innovation has several different features and tenants, the major takeaway from it is that the team is proactive in addressing issues and concerns, and that the patients are given the tools to be their own advocates.
Technological Future of the Industry
The next few years
are likely to see the continuation of the trend of technology being further
increased and popularized within the healthcare industry. However, one
important facet of this is that clerical and administrative tasks are likely to
continue to be supplemented by technological support. Additionally, healthcare
analytics has been a growing technology in the industry, which is a trend that
is all but certain to continue within the industry. However, only time will
tell if these innovations will make a substantive impact on cost and patient
About the Authors
Arthur Mansourian has a 12-year track record as both a management consultant and investment banker, advising clients on valuation, capital markets, structured financing, mergers, acquisitions and divestitures and general corporate strategy.
Mr. Mansourian served as Vice President while at NMS Capital Advisors, when the company achieved cumulative sales growth of over 5,100% with annual compounded sales growth in excess of 120% from 2012 to 2017.
Dr. Harry Moore MBE is the Head of Europe, Global Head of Turnaround Transformation. His experience and expertise include international strategy, corporate turnaround, transformation, market penetration, and increasing profitability. Prior experiences include leading business transformation teams at both KPMG and PwC, and being sponsored by the UK Government to manage initiatives that he designed to secure the future of enterprises in the SME sector in the UK. His strategies resulted in saving roughly 135 UK businesses.