The U.S. healthcare industry is in a significant moment of transformation. Stakeholders today must navigate complex dynamics—including technological advancements, financial health, and evolving patient needs— to build a more resilient, effective healthcare system for tomorrow. As the industry looks to the future, the following are a few considerations to keep top of mind.
With technology driving change in our industry, digital health has emerged as a key area of focus. Most health systems now have digital programs in place, and the shift toward digital health is expected to grow, informing patient-clinician interactions and healthcare delivery models.
Meanwhile, artificial intelligence (AI) and machine learning (ML) are poised to play an increasingly important role in healthcare. Although the use of AI/ML is still in its early stages, stakeholders are beginning to recognize the potential benefits of these technologies in their operations, not only in improving patient outcomes, but also reducing costs by streamlining administrative tasks and enhancing resources to help combat labor shortages. Investments in AI/ML are expected to increase, reflecting a broader trend toward data-driven decision making and personalized care.
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Financial health across the industry presents a mixed picture. While some organizations report stability, others are grappling with financial uncertainty. The rising costs of healthcare continue to present concerns for providers and patients alike, with disparities in perceptions of affordability across demographic groups. This trend underscores the need for continued efforts to address cost-related challenges and improve financial sustainability, such as opportunities for controlling nonlabor costs, which we explore in more depth in the “Cost Reduction Trends in Healthcare” article.
Yet, as the sector emerges from the acute financial strains caused by labor shortages, inflation, and the COVID-19 pandemic, there is cautious optimism for recovery. The financial health of healthcare systems, which suffered during the pandemic, is expected to progress as performance improvement initiatives, mergers and acquisitions, and revenue diversification strategies start yielding results, as seen in the stabilization of health-system margins and the growth of managed care populations.
Specialty pharmacy services are also expected to grow in response to the increasing complexity of treatments available. Challenges persist, however, particularly in skilled nursing and long-term care, where profit pools continue to weaken as the staffing-shortages continue while facilities must respond to the changing needs of the growing elderly population. In addition, the payor segment is experiencing shifts, with growing participation in Medicare and Medicaid Advantage plans, creating additional influence and power for payors and challenges for providers due to their cost-control initiatives and restrictions driving a surge in denials.
Overall, the future of the healthcare industry is one of guarded optimism, with the potential for significant expansion and improvement driven by technology, policy, and market dynamics. As we look to 2025 and beyond, we expect to see further growth and evolution, particularly in outpatient care settings, healthcare services, innovative uses of technology, and specialty pharmacy services. While the industry continues to navigate the opportunities and obstacles ahead, the focus will be on improving margins, enhancing patient care, and leveraging technology to its fullest potential.
Read on for more information about these trends and reach out to a professional at Forvis Mazars today to explore how we can help your organization prepare for the future.