Deloitte released a report last week predicting the key trends that will shape the healthcare landscape in 2024. For its report, the consulting firm surveyed 60 health system and health plan executives who work at companies with an annual revenue of more than $500 million.
The report forecasted that five main trends will have the biggest impact on healthcare organizations’ business strategies next year: M&A, generative AI, workforce challenges, outsourcing and affordability.
M&A
Nearly nine in every 10 surveyed health system executives said they believe M&A will have a great or moderate impact on their 2024 strategy. Health plan executives were less concerned with M&A — just one third said that it would affect their strategy for next year.
This year saw a lot of hospital M&A activity, including the announcements of the Kaiser Permanente-Geisinger merger and the Froedtert Health-ThedaCare merger. The report predicted that this trend of consolidation will continue in 2024 — health systems are seeking M&A deals to boost operational efficiency, improve cost-effectiveness and strengthen their ability to provide comprehensive and integrated services in an increasingly competitive landscape.
Generative AI
In the year since OpenAI released its viral chatbot ChatGPT, generative AI has already made a huge splash in the healthcare world. Hospitals are using the technology to predict in-hospital mortality, length of stay and claims denials, the report pointed out. The report also highlighted that consumers are turning to generative AI to answer questions about how to take care of themselves and navigate the healthcare system.
As more and more health systems consolidate, leadership must ensure that all hospitals under one brand share the same caliber of advanced technology, the report said. Having disparate systems can cause bottlenecks, and new generative AI tools are poised to make healthcare processes more efficient and seamless between different facilities, the report noted.
Workforce challenges
Nearly 60% of health system executives surveyed by Deloitte said labor shortages will affect their organization’s strategy in 2024. Health plan leaders were less worried about workforce issues, with just 37% saying these would impact their 2024 roadmap.
Health systems leaders said they will continue to focus on their employees’ mental health and well-being next year by offering better employee benefit packages and soliciting more staff feedback.
Outsourcing
Financial challenges — stemming from increasing labor costs, a higher incidence of payer denials and high interest rates — are still putting pressure on hospitals. To alleviate this, some health systems are outsourcing functions such as revenue cycle, billing, claims, finance, human resources, clinical administration and supply chain, the report pointed out.
Hospitals should identify their strengths and explore opportunities to outsource tasks that can be executed more cost-efficiently, the report recommended.
Affordability
In 2024, consumers may face higher out-of-pocket costs due to medical inflation and increasing coverage expenses, according to the report. Half of health plan executives said that affordability concerns will be the biggest issue impacting their strategy for next year.
Healthcare leaders can influence consumer health choices, as well as potentially boost loyalty and market share, by offering digital tools that help patients navigate their healthcare journey, the report noted.
Photo: Getty Images, AndreyPopov
