How to manage your medical office in the future matters.
Genesis Medical Management offers you a picture of the 2020 outlook for the healthcare industry and some of the driving forces behind the upcoming changes in healthcare. Some of the key factors behind healthcare changes in 2020 will be increased digital technology, consumer demand for value-based care, increasing transparency, and reducing costs while improving services.
The healthcare industry is becoming more efficient with the advancement of tele-medicine and technology assisted self-managed care. The industry will continue to struggle with a lack of skilled professionals and organizations will need to develop alternative sources for cultivating new talent. Mergers and deals will continue to increase to gain economies of scale, although the mega deals are mostly completed. Virtual healthcare growth will be huge with consumers and physicians all adopting the technology to expand access and improve outcomes.
Data, Data, and More Data
Data, data, and more data is going to be the mantra of the healthcare industry. Digital health data creation, storage, and processing is going to expand astronomically. Virtual services will cause an increase in digital investment. One of the biggest players will be advancements in wearable internet connected technology for monitoring patients and providing feedback.
The privacy of all that health data will be one of the largest concerns facing healthcare providers. There are going to be increasing regulations and everyone is going to be focused on who owns the data and who can use or share that data. The sharing of data among organizations is going to cause the need for stronger cyber security. Data management and security is going to be one of the largest costs and concerns for providers.
Health care organizations are going to continue to move away from a traditional fee-for-service care model into some form of value-based care. Regulatory changes will help the transition from fee-for-service care to value-based care, such as the proposed changes to Stark Law and the anti-kickback statute. An increase in provider compensation and incentives will also drive this transition.
Providers will be rewarded for helping heir patients improve health, reduce occurrence and impact of chronic disease, and live healthier lives. Patients will spend less money to achieve better health. Providers will become more efficient and achieve greater patient satisfaction. Providers will control costs and reduce risks. Suppliers will align their products and services with positive patient outcomes and reduced costs. The goal of value-based care is reduced overall healthcare spending as society becomes healthier.
It’s A Deal
Mergers and deals will continue to grow throughout 2020 as everyone looks to gain economies of scale through consolidation. While the mega mergers are reaching an end, large health care systems will continue to purchase single hospitals or physician groups to gain access to new geographies or to gain market share in existing geographies. Another area where there will be more acquisitions is non-profit organizations by for-profit organizations, or at least affiliations, providing regulations don’t put an end to this. We may also see large retail entities breaking into the healthcare industry to grab a piece of the very large pie, such as Walmart has done with their Walmart Care Clinics, or Amazon’s recent jump into the pharmaceutical world with the acquisition of PillPack.
Where are the Doctors?
The shortage of doctors is expected to continue to increase. Nurses will also be in high demand. Organizations will have to get creative in developing alternative sources for recruiting new talent. New methods will need to be put into place to recruit, hire, train, and retain skilled healthcare workers. Some organizations are using alternative employment models, such as virtual medicine and contracts to draw their talent. Innovative technology will be one of the biggest draws in the new improved working conditions.
There will be an ever-evolving healthcare industry and organizations will have to work to remain viable. With the upcoming elections there will be a lot of political noise that will be concerning to healthcare providers. One thing we know we don’t have to worry about at this point, regardless of the political noise, is a Medicare for All type of program happening anytime soon. Regardless of the healthcare outlook, Genesis Medical Management is committed to keeping you informed and assisting you in making the adjustments needed to maintain strong growth and viability.
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