US Healthcare Industry Outlook and Key Trends

Published on : February 3rd, 2016
Author : HealthRecon Connect

Key Highlights from the ‘Deloitte – 2015 Healthcare providers outlook United States’ Article.

Financial

    • The US is the only country without a Healthcare budget

    • US spending per capita is roughly 2X vs other developed economies

    • Estimated Healthcare expenditure: $ 2.8 trillion in 2013 17.7% of GDP

  • Projected to grow by an average of 4.9% between 2014-18 – to 17.9% of GDP by 2018

  • Costs are driven higher due to economic and demographic trends – more patients due to an aging population and regulatory changes (i.e. 2010 Affordable Care Act) and greater access of the newly insured

  • Advances in diagnostics and therapeutics continue to drive costs higher – i.e. unraveling the human genome, targeted therapies and new medical devices

  • Move towards Value Based Payments (i.e. ACOs) and pay for quality to reduce costs

  • Physicians anticipate Value based payments to make up 50% of their total compensation in the next 10 years

  • Smaller Providers (e.g., single hospitals, independent physician groups) in danger of exclusion from more narrow networks.

  • Employers shifting health Insurance costs to patients through high deductibles – Patients more price sensitive/ consumerism

Industry Structure & Reforms

  • Significant regulatory changes, technological innovations, financial pressures and market dynamics – resulting in rapid consolidation among health care providers

    • Physicians are rapidly moving from private practice to an employed model and are being acquired by health systems and health plans – both vertical (health systems acquiring physician practices, ambulatory centers, diagnostic centers, home care services, and durable medical equipment and wellness companies) and horizontal (hospitals acquiring other hospitals)

    • Cross-sector convergence expected to increase – It will be more likely for a health plan to offer clinical services — both professional and technical — and for health care providers to offer health care financing products.

  • Healthcare reform-related programs requiring clinical integration (accountable care organizations, medical homes, bundled payments) have accelerated adoption

  • Healthcare information security breaches on the rise – cost the industry up to $5.6 B annually

  • Federal and state policy makers will continue to add to the complexity, i.e. ICD-10, 340B, meaningful use, ACA, transparency, and security and privacy

Key words: HealthRecon Connect, US Healthcare, US Healthcare trends, Outsourcing, Medical Outsourcing, Healthcare Outsourcing, Revenue Cycle Management, RCM, Medical back office outsourcing, Healthcare back office outsourcing.

From Our Blog

WANT TO FIND OUT MORE? CONTACT US TODAY

  • Name*
  • Email*
  • Phone
  • Country*
  • Please enter the following code in the text box below
    captcha