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6 Take-aways from Deloitte's Annual Healthcare Outlook Paper

This morning, Deloitte published their annual 2019 US and Global Health Care Industry Outlook paper, which uses their research to detail the future of the healthcare community.

For your skimming benefit, here are our main take-aways from Deloitte’s report:

1. Higher spending ≠ higher quality of care

“When compared to 10 developed countries, the United States ranks last in overall health care performance, highlighted by per capita spending that is 50% greater than the next country and last place rankings in efficiency, equity, and healthy lives"

2. Healthcare is shifting towards value- and outcomes-based reimbursement

“Health care systems will likely need to innovate and embrace new business, care delivery, and risk models to potentially shape affordable, high-quality health care solutions for the future. And while 2019 Global health care outlook change is never easy, a very important one is already underway: the transition from volume-based/fee-for-service (FFS) models to value-based care (VBC). Emerging VBC reimbursement models are edging out FFS arrangements and creating a new paradigm in which health care services are delivered by a coordinated care community sharing in the responsibility—and risk—of outcomes and costs.”

“All stakeholders must actively participate in shaping the future— which requires a philosophical shift in focus away from a system of sick care, in which we treat patients after they fall ill, to one of health care, which supports wellbeing, prevention, and early intervention.”

Undoubtedly, these care delivery models are going to require a stronger prioritization of care coordination and communication across all touchpoints of the healthcare ecosystem. Focusing on the social determinants of health will result in a more holistic approach to risk and preventative care, which “often have a greater impact on health outcomes than does healthcare”.

3. A “Care anywhere” healthcare model, moving outside of hospital walls

“Clinical innovations, patient preferences, and financial incentives are prompting hospitals and health systems to move certain inpatient services to lower-acuity/outpatient settings. “

“Virtual health/telehealth expand outpatient services while also helping hospitals bend the cost curve and boost revenue.”

With the rise of healthcare consumerism and direct B2C healthcare tech(wearables, prescription delivery, mail-in gut biome testing, etc), more and more of the healthcare space will begin to thrive outside of hospital walls.

4. Growing Emphasis on Consumer-Centric Care

“Dissatisfied with poor service and lack of transparency around price, quality, and safety, today’s health care consumers are expecting solutions that are coordinated, convenient, customized, and accessible”

According to Deloitte, factors that add to this rise in consumerism are:

  • Increasing prevalence of chronic diseases
  • An explosion of digital tools to inform, educate
  • Financial scrutiny due to high deductible insurance plans
  • A rise in healthcare consumerism
  • Emerging competition from consumer-centric, tech-savvy companies

“As patients’ role and influence in their health care increase, providers and payers must likely shift accordingly and take advantage of emerging opportunities to establish more direct, personal relationships with the consumer”

5. Digital’s potential in “heart of the business” operations

“One issue remains consistently important: harnessing emerging technologies to enable core systems and back-office processes to reinvent how daily work gets done. Some provider organizations are already taking steps toward using machine learning and robotic process automation (RPA), cloud-based software-as-a-service (SaaS) offerings, and predictive tools to improve two primary core functions: revenue cycle and supply chain.”

6. Countering cyber crime

“The legacy of the Wannacry attack continues to resonate across the health care landscape, as cyber criminals plan and execute increasingly sophisticated attacks at a growing rate.

Although new technologies and government initiatives to improve cybersecurity are on the rise, the value of patient data is increasing as well, and with it, the amount of cybercrime. Recently, a number of large data breaches have occurred, with as many as 79 million people affected in one such health care breach.”

 

To read their full report, you can access it on their website here.