4 Healthcare Industry Predictions for 2023
As we are heading into 2023, the healthcare industry is still recovering from the fallout of the COVID-19 pandemic, continuing to firmly persevere through challenges while bringing more innovation and growth each year. Here are 4 predictions for what to expect in the upcoming year:
1. Staffing Shortages Will Continue to Persist
While it isn’t the news anyone wants to hear, industry professionals expect a large number of experienced healthcare professionals to quit or retire in the next few years. Just looking at 2022 alone, The Bureau of Labor Statistics estimate that approximately 500,000 nurses left the industry and the American Hospital Association declared a national emergency of healthcare professional shortage with a shortage of 1.1 million nurses heading into 2023 and a shortfall of 3.2 million allied health professionals over the next five years. Especially affected by burnout and stress in the aftermath of the COVID-19 pandemic, healthcare professionals are turning to employers and policymakers to help ease the burden. Industry professionals predict that labor shortage and industry worker rights will be a priority item for employers and federal, state and local policymakers in 2023.
2. Innovation Moved to the Back of the House
Healthcare industry continues to rapidly modernize each year with a priority on modernizing consumer facing facets of the industry. Unlike previous years, however, 2023 might become the year healthcare leaders refocus on administration upgrades, the back of the house. From pharma and health systems partnerships to embracing new administrative software solutions, industry professionals predict that 2023 will be an innovative year of administrative changes.
3. Scaling of Hybrid Models and Increased Accessibility
One of the silver linings to the COVID-19 pandemic was that it pushed the industry to implement virtual care solutions, and explore hybrid healthcare models, two highlights experts predict will continue to be improved on and grow in 2023. Many individuals struggle to get access to healthcare they need, and these hybrid models and virtual care solutions address some major challenges such as coverage and affordability, geographic location, and long wait times due to workforce shortages, etc. Virtual solutions, telemedicine and community-based care are sure to be topics to look for in the upcoming year.
4. COST OF HEALTHCARE WILL BE REVISED/RECALCULATED.
With hybrid models aiming to improve accessibility and offer lower cost primary care via retail clinics (Amazon, Optum, Walmart, CVS, and Walgreens to name a few), industry experts predict a shift from prevention as a cost-reduction measure toward high-cost chronic disease management. Advisor Scott Disch also adds that “Investors are expecting a waterfall effect on MLR and for new companies to get paid on milestone achievement or results, and no more advance Per Member Per Month Payments (PMPM) with a future promise of cost improvement.”
Additionally, 2023 is also predicted to be the year drug costs will be revised and payers and government entities will finally come to an agreement in reducing high drug prices for life saving drugs. 2023 is poised to be a pivotal year for drug pricing reform as numerous stakeholders seek to find common ground in reducing the cost of life-saving drugs. This is a long-standing issue, with prescription drug prices in the US and other countries rising at an unsustainable rate for many years. Payers, government entities, and pharmaceutical companies are all expected to play a role in determining the outcome of this issue. The high cost of drugs has resulted in many patients being unable to afford the treatments they need, which is unacceptable. This has resulted in a growing sense of urgency to find a solution. 2023 is shaping up to be a year of change, as the various parties work to come to an agreement on reducing drug costs and improving access to life-saving treatments for patients.
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