Adapting to the Rapidly Evolving Landscape of Competition, Recession, and Personalized Healthcare
The healthcare industry continues to be challenged as we enter 2023. While the pandemic has transformed healthcare in a matter of just two years, hospitals are at a tipping point as the impending recession, new competitive entrants in the healthcare space, and familiar constraints like sweeping workforce shortages, chronic disease, and supply chain crises loom over. In addition, primary care organizations are struggling to keep up with patients’ demands for more personalized proactive care, which is at an all-time high, finding themselves at the throes of retail health organizations and competition. It is crucial for healthcare organizations to invest in transformation and workforce to keep their market foothold in this dynamic market. The future of healthcare lies with value-based care and improving health outcomes.
Experts are predicting that hospital bankruptcies will be spiked by a third due to the economic downturn and consumer behavior. Patient volumes, high-deductible health plans, and commercial insurance rates are increasing hospital’s sensitivity to recession with “chapter 11 bankruptcy filings for large healthcare organizations in 2022 are tracking 28% higher than for 2021.” Hospitals should start calculating their Z-score monthly and track it for 24 to 36 months in order to keep finance distress levels low to navigate through this crisis. This will help hospitals identify risks and implement financial strategy to keep away from the red zone.
Moreover, retail health clinics are expected to double their shares of the primary care market. COVID-19 pandemic has shifted patients’ views on where to turn to for primary care needs. Constrained by resource shortages, traditional healthcare organizations failed to match retail health clinics’ personalized and elevated patient experiences, which led to a 21.5% retail health clinic growth from 2019 to 2020 fueled initially by the need for local and accessible COVID-19 testing and care, and shifting to the need for low cost, no-appointment, and convenient quality care. “In 2022, the US retail clinic market size was valued at $3.49 billion, with additional retail companies looking to join the ranks of CVS-Aetna, Walgreens, Walmart, Amazon, and Optum-United Health Group.” This number is predicted to continue to grow in 2023.
A key asset in staying ahead of the retail health competition is to invest in remote patient monitoring (RPM) tools. “Today, six in 10 Americans live with at least one chronic disease, and the annual economic burden of the most common chronic diseases is more than $1 trillion.” RPM is a crucial part of expanding personalized healthcare into homes and making healthcare more convenient and accessible to a wider demographic. In fact, “the global RPM market is projected to reach $175.2 billion by 2027 from US$53.6 billion in 2022, at a compound annual growth rate of 26.7%” and will create a significant improvement in clinical prognosis by removing socio economic hurdles due to social determinants of health. Organizations should be ready to stray from traditional patient care models and invest in talent and resources that can respond to the demands of patients and the industry in order to navigate through the challenges brought on by the new year.
As healthcare organizations strive to navigate through the challenges of 2023, they must also address the ongoing issue of supply chain disruption. The COVID-19 pandemic has exposed vulnerabilities in the healthcare supply chain, with shortages of personal protective equipment (PPE), medication, and medical devices. These shortages have resulted in price hikes and delayed delivery times, negatively impacting patient care. To mitigate these risks, healthcare organizations should diversify their supply chain sources and invest in digital technologies that can improve supply chain visibility, such as blockchain and internet of things (IoT) solutions. By proactively addressing supply chain challenges, healthcare organizations can ensure a consistent supply of essential resources and maintain the highest level of patient care.
In conclusion, the healthcare industry continues to face significant challenges in 2023, including a recession, competition from retail health clinics, chronic diseases, workforce shortages, and supply chain disruption. However, these challenges also present opportunities for healthcare organizations to adapt and transform, with the future lying in value-based care and personalized proactive care. By investing in transformation, talent, and resources, organizations can navigate through these challenges, improve patient outcomes, and maintain their market foothold in this dynamic landscape. As we move forward into the future, it is crucial for healthcare organizations to stay agile, innovative, and patient-focused to drive positive change in the industry. Precision Healthcare – a division of Precision Talent Group.