In its annual healthcare outlook survey, Deloitte cited five factors that will reshape the healthcare industry in 2024. The survey serves as a compass for industry trends and forecasts, outlining a transformative roadmap for the year ahead. From the resurgence of M&A activities and the adoption of generative AI, to navigating workforce talent challenges and exploring outsourcing strategies, the healthcare industry is gearing up for some real changes.
These key factors are projected to reshape the healthcare market in the coming year:
- M&A, Consolidation and Convergence: While hospital and health system M&A activities saw a notable decline during the COVID-19 pandemic, a robust resurgence is underway, expected to extend into 2024. Large-scale mergers are currently in progress, with 86% of health system executives foreseeing a substantial impact on their 2024 strategy.
- Generative AI and Digital Transformation: Healthcare organizations find themselves midway through the adoption of digital technologies, including cloud computing, data analytics, natural language processing and virtual health. Survey respondents anticipate a significant influence on their 2024 strategy, with generative AI emerging as a powerful tool to address challenges such as access, patient wait times, claims and staff burnout.
- Workforce Talent Challenges: A shift is observed in workforce concerns, with 57% of health system executives expecting talent shortages and workforce challenges to affect their 2024 strategy, down from 68% in the previous year. The focus remains on recruiting and retaining clinical staff while tackling clinician burnout. Conversely, health plan executives express less worry about workforce issues, with only 37% anticipating an impact on their 2024 strategy, down from 43% in the previous year.
- Outsourcing and Offshoring: Tight margins, rising labor costs and high interest rates prompt healthcare organizations to explore outsourcing as a financial strategy. Deloitte suggests identifying core competencies and outsourcing functions that can be executed more efficiently and cost-effectively. Areas such as revenue cycle, billing, claims, finance, human resources, clinical administration and supply chain management are potential candidates for full or partial outsourcing.
- Affordability and Empowered Consumers: In 2024, the combination of medical inflation and rising coverage costs will lead to higher out-of-pocket expenses for consumers in 2024. Affordability issues top the concerns, with 50% of surveyed health plan executives identifying it as the most probable factor affecting their strategy for next year.
