The COVID-19 pandemic accelerated healthcare transformation by a decade, but unprecedented challenges persist, making a bottleneck in healthcare innovation efforts. Hospitals are at a tipping level and the highway forward is grim. The looming recession, new aggressive entrants within the healthcare area, and acquainted constraints like sweeping workforce shortages, continual illness, and provide chain crises are colliding and require healthcare organizations to take fast motion. In the meantime, shopper demand for proactive, customized experiences is at an all-time excessive. Embattled main care organizations are discovering it laborious to measure up, as they discover themselves within the throes of retail well being disruption and oncoming competitors from each route.
To thrive on this dynamic market, healthcare organizations should spend money on transformation and workforce expertise or danger their market foothold. The way forward for healthcare is dependent upon resilience and proactivity to propel value-based care and enhance inhabitants well being outcomes.
In 2023, we predict:
Financial downturn and shopper behaviors will spike hospital bankruptcies by a 3rd.
Affected person volumes, high-deductible well being plans, and industrial insurance coverage charges will transfer the needle on hospital sensitivity to recession from low to excessive. Chapter 11 chapter filings for giant healthcare organizations in 2022 are monitoring 28% increased than for 2021. Rural hospitals are particularly in danger with greater than 30% at fast danger of closure as a result of low monetary reserves or reliance on authorities assist. In 2020, the lack of employer insurance coverage and vital shift from non-public to public insurance coverage price hospitals an estimated $95 billion in annual income and an extra $33 billion as a result of cost-aversive shopper habits.
To navigate this disaster and keep afloat, hospitals ought to begin quantifying their finance misery ranges now by calculating their Z-score month-to-month and monitoring it for twenty-four to 36 months. It will assist determine dangers and set off a monetary turnaround technique for hospitals at or nearing the crimson zone.
Retail well being clinics will double their share of the first care market.
In 2023, sufferers will select retail well being for his or her main care wants as well being techniques, constrained by insufficient assets, fail to match retail’s elevated affected person experiences. From 2019 to 2020, retail well being clinics skilled development of 21.5% fueled initially by the necessity for native, handy COVID-19 testing websites, and sustained by their skill to offer accessible, no-appointment-needed, handy, and low-cost high quality care. In 2022, the US retail clinic market measurement was valued at $3.49 billion, with further retail corporations trying to be a part of the ranks of CVS-Aetna, Walgreens, Walmart, Amazon, and Optum-United Well being Group. As retail well being doubles within the main care area, demand for well being techniques to step up their affected person expertise sport will enhance whereas sufferers flock to retail well being main care suppliers.
1 / 4 of the US grownup inhabitants will likely be handled with RPM instruments for continual situations.
The necessity to monitor, report, and analyze sufferers with continual situations of their time of want is a nationwide crucial. Forrester predicts distant affected person monitoring (RPM) instruments will play a important position in treating multimorbid sufferers to mitigate probably avoidable hospitalizations and the exacerbation of continual illnesses. At present, six in 10 Individuals dwell with at the least one continual illness, and the annual financial burden of the commonest continual illnesses is greater than $1 trillion. As of June 30, 2020, an estimated 41% of US adults reported having delayed or averted medical care throughout the pandemic.
RPM took off as a vital a part of increasing acute-care-at-home fashions. The worldwide RPM market is projected to achieve $175.2 billion by 2027 from US$53.6 billion in 2022, at a compound annual development charge of 26.7%. Gadgets like weight scales, pulse oximeters, blood glucose meters, blood stress screens, coronary heart screens, and wearables will enhance medical prognosis and take away socioeconomic hurdles as a result of social determinants of well being.
Our predictions will enable you to determine the important thing challenges and alternatives forward and energy your group with unique perception on the way to acquire an aggressive edge. Learn our report (shopper entry) for a deeper dive on what 2023 has in retailer for healthcare, and tune into our upcoming shopper webinar to start strategizing to achieve new ranges of success in 2023.
To know the most important dynamics that can affect the broader enterprise panorama subsequent 12 months, go to Forrester’s Predictions 2023 hub.
Senior Analyst, Alex Shlyankevich, Analyst, Kyle Rybarczyk, and Researcher, Kara Wilson contributed to this weblog.
