Last week, a healthcare-focused market research firm, Trilliant Health, unveiled a crucial report highlighting the key economic trends influencing stakeholders in the U.S. healthcare industry this year. The report spotlighted several key themes including the declining physical and mental health of Americans, the shift away from conventional care pathways, and a growing patient-driven consumerist approach to healthcare.
The report outlines the 10 trends Trilliant has identified as most impactful in shaping the healthcare economy:
- Declining rates of commercial insurance: The rate of uninsured individuals in the U.S. reached 7.7% earlier this year, thanks to the Affordable Care Act and pandemic-era policies. However, the commercially insured population saw a 0.3% decrease from 2021 to 2022, an area of concern given most healthcare revenue stems from commercially insured individuals.
- Looming health crisis: More Americans under the age of 40 are dying in 42 states with the mortality rate more than doubling in some states as a result of a rise in overdose deaths. Concurrently, fewer patients are seeking primary and preventive care due to cost concerns.
- Emerging patient needs shaping drug and diagnostic investments: With a noticeable focus on treating genetic diseases and cancer, many of the world’s largest drug makers have focused their drug pipelines on oncology.
- Demand for healthcare services remains tepid: Despite a high demand for emergency care and behavioral health services, healthcare utilization has experienced a decline in most other care settings since 2021.
- Consumer behaviours reflected in patient decision making: Negative perceptions of the healthcare system is on the rise. As a result, patients are increasingly seeking care from nontraditional sites such as retail pharmacy chains.
- Decentralization of the traditional care pathway: As patients opt for more accessible non-traditional care sites, healthcare journeys are becoming increasingly fragmented, complicating the provision of necessary ancillary medical services.
- Shortage of provider supply due to new models of care: Despite new entrants into the field like retail clinics and home health providers, the number of practicing physicians has seen a decrease of 2.3% from 2018 to 2022.
- Exaggerated effects of provider M&A: The report indicates that market concentration is not correlated with hospitals’ financial performance. Spending on lobbying is increasing with stakeholders keen on influencing federal policy regarding M&A.
- Rising costs for employers: Employers’ health insurance costs continue to increase. Employer-sponsored health insurance expenditures totaled $1.07 trillion in 2021, making up 25% of all health expenditures nationwide.
- Market rates lower than anticipated: Healthcare expenditures are predicted to continue rising until 2026, placing pressure on all stakeholders to align their rates with the market ones, which have become more transparent.
In the face of these trends, it is becoming increasingly clear that the healthcare system needs to prepare for the challenges ahead. The shifts in patient behavior and preferences, the evolving health insurance landscape, and the rise in healthcare costs all serve as clear indications of the need for increased adaptability and forward-thinking solutions.