The COVID-19 pandemic accelerated healthcare transformation by a decade , yet unprecedented challenges persist, creating a bottleneck in healthcare innovation efforts. Hospitals are at the tipping point and the road ahead is grim. The looming recession, new competitive entrants in the health care space, and familiar constraints like sweeping workforce shortages, chronic disease, and supply chain crises are usually colliding plus require healthcare organizations to take immediate action. Meanwhile, consumer demand for proactive, personalized experiences is at an all-time high. Embattled primary care organizations are finding it hard to measure up, as they find themselves in the throes of retail health disruption and oncoming competition from every direction.
To thrive in this dynamic market, healthcare organizations must invest in change and workforce talent or risk their market foothold. The future of health care depends on resilience and proactivity in order to propel value-based care plus improve population health outcomes.
In 2023, we predict:
Economic downturn and consumer behaviors will spike hospital bankruptcies by a third.
Patient volumes, high-deductible health plans, and commercial insurance rates will move the particular needle upon hospital sensitivity to recession from low to high. Chapter 11 bankruptcy filings for large healthcare businesses in 2022 are tracking 28% higher than for 2021. Rural hospitals are especially at risk with more than 30% at instant risk of closure due to low financial reserves or even reliance on government aid. In 2020, the loss of employer insurance plus significant shift from private to public insurance cost hospitals an estimated $95 billion in annual revenue and an additional $33 billion dollars because of cost-aversive consumer behavior.
To navigate this crisis and stay afloat, hospitals should start quantifying their finance distress levels now by calculating their own Z-score monthly and monitoring it with regard to 24 to 36 months. This will help identify risks and trigger a financial turnaround strategy for private hospitals at or nearing the red zone.
Retail health clinics may double their particular share associated with the primary care marketplace.
In 2023, patients can choose store health for their primary treatment needs as health systems, constrained simply by inadequate resources, fail in order to match retail’s elevated patient experiences. From 2019 to 2020 , retail wellness clinics experienced growth of 21. 5% fueled initially by the need for local, convenient COVID-19 testing sites, and sustained by their ability to provide accessible, no-appointment-needed, convenient, plus low-cost quality care . In 2022, the US retail clinic market size was valued at $3. 49 billion, with extra retail companies looking to join the ranks of CVS-Aetna, Walgreens, Walmart, Amazon, and Optum-United Health Group. As retail health doubles in the main care space, demand regarding health techniques to step up their patient experience game will increase while patients flock in order to retail wellness primary care providers.
A quarter associated with the US ALL adult populace will be treated with RPM tools intended for chronic conditions.
The need to monitor, report, plus analyze individuals with chronic conditions inside their time of need is a national imperative. Forrester predicts remote patient monitoring (RPM) tools will play the critical role in treating multimorbid patients to mitigate potentially avoidable hospitalizations and the exacerbation of persistent diseases. Today, six in 10 Americans live with at least one chronic disease, plus the yearly economic burden of the particular most common chronic diseases is a lot more than $1 trillion . As of June 30, 2020, approximately 41% of US adults reported having delayed or even avoided medical care during the pandemic.
RPM took off as a crucial part of expanding acute-care-at-home models. The global RPM market will be projected to reach $175. 2 billion dollars by 2027 from US$53. 6 billion in 2022, at a compound annual growth rate of 26. 7%. Devices like weight scales, pulse oximeters, blood glucose meters, blood pressure monitors, heart monitors, and wearables will improve clinical prognosis plus remove socioeconomic hurdles due to social determinants of health.
Our predictions will assist you identify the key challenges and opportunities ahead and power your organization along with exclusive insight on how to gain an competitive edge. Read our report (client access) for a deeper dive upon what 2023 has in store for healthcare, and tune into our upcoming client webinar to begin strategizing to reach new levels of success within 2023.
To understand the major dynamics that will impact the broader business landscape next year, visit Forrester’s Predictions 2023 hub .
Senior Analyst, Alex Shlyankevich, Analyst, Kyle Rybarczyk, and Researcher, Kara Wilson contributed in order to this blog.