Future Healthcare Revenue Will Be Driven by 3 Trends

85% of healthcare income will be driven by the demise of the general hospital, a shift in the financing of healthcare, and a decrease in mass-produced medicines, according to experts.

The ability to treat and prevent disease, rising technologies, and active healthcare consumers make it unlikely that healthcare spending will continue to rise. But, according to Deloitte’s industry analysts, this will significantly affect where providers derive their income.

Using their own approach, CMS actuaries predicted that healthcare spending would total $83 trillion by 2040, which experts predict will be $3.5 trillion less.
According to Deloitte, the difference or “well-being dividend”—is caused by a sharp drop in treatment-related spending.
We believe the US healthcare system has already entered the first stage of the Future of Health—a profound transition that we expect will take place over the next 20 years—despite Deloitte’s projection running opposed to historical trends, experts said in the research. New business models, technological advancements, customers armed with highly tailored data, and laws that promote change will probably be the main forces behind this future.

The experts noted that while these adjustments and others (such as improvements in data sharing, interoperable data, and equal access to care) may finally help the industry bend the healthcare cost curve, they also require provider organizations to adapt their sources of income.
Most significantly, according to analysts, provider groups will observe a shift in revenue from regular hospitals to more specialized care centers.

According to the research, “care is already moving away from hospital-based settings to lower acuity, less expensive, and more convenient settings.” “Consumers will probably keep pushing providers to provide treatment in environments that match their tastes. Technological developments will probably change how healthcare is provided.
In the “Future of Health,” where patients and physicians rely on continuous and ongoing in-home monitoring, an acute myocardial infarction—which currently necessitates hospitalization—could be completely avoided.

The paper went on to say that rather than being a “one-stop” for all disease states and specialties, patients who do require care are likely to get it in highly specialized settings that are designed to meet a specific need.

Because of the growing emphasis on preventative treatment supported by digital and patient engagement tools, health plans will also experience a change in revenue. This will probably result in less risky beneficiaries and new strategies for redistributing risk among those who are covered.
Additionally, a decline in mass-produced medicines and an increase in individualized medicine will affect the profitability of biopharmaceutical businesses.

Overall, healthcare income is expected to shift to businesses that concentrate on well-being and care delivery, data and platforms, and care facilitation, according to experts.

In this future state that is centered on prevention and well-being, ten new archetypes—new roles, functions, and business models—will succeed, and incumbents in the healthcare industry will need to “reinvent themselves” to “become enterprises in one or more of these archetypes,” according to the report.
The data convener, science and insight engine, data/platform infrastructure builder, personalized virtual health across, health products developer, localized health hub, specialty care operator, connectors and intermediaries, individualized financier, and regulator are some examples of these archetypes.

Regardless of archetype, health care providers and organizations “will likely see growth if they invest in next-generation skills and technologies, while those who continue to invest in old infrastructure and talent risk falling behind.”
“Consumers have the ability and desire to demand from their provider more individualized care—care that takes into account both their medical history and the social reality of their unique status and lifestyle. Neal Batra, principal in Deloitte Consulting LLP’s life sciences and health care group, predicted that firms who priorities keeping their customers healthy will receive praise from these empowered customers.

The promise of a future that puts well-being at the center, eliminates waste from our health care economy, and uses a significant well-being dividend to improve our society as a whole can be realized, according to Batra, by organizations that respond by personalizing health care in ways that are scalable to large populations.