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Even though there are still challenges facing the industry, healthcare executives are optimistic heading into 2025, with a new Deloitte survey showing 60% of C-suite leaders have a favorable view of the coming year, up from 52% a year ago.
Most, 69%, expect greater revenues, while 71% anticipate improved profitability.
After years of navigating their businesses through the challenges of margin pressure, workforce shortages and rapid technology implementation, Deloitte determined based on the survey responses that 2025 could mark a turnaround period for the sector, marked by innovation and strategic growth.
WHAT’S THE IMPACT?
Sixty-five percent of executives cited developing growth strategies for their organizations as a top priority for 2025 – the most-selected trend for the sector. And 46% of executives identified consumer affordability in healthcare as a top trend, though the survey authors said that balancing margin growth and profitability while mitigating care costs presents a challenge for both providers and health plans.
Sixty-five percent of healthcare executives identified “developing growth strategies to increase revenue” as a priority, and most indicated they intend to take a multidimensional approach.
A focus on organic growth was common among the respondents, with consumers seen as an important component of that growth. To attract new consumers and drive organic growth, half of health plan executives and 55% of health system executives agree they need to improve consumer engagement, trust and the overall consumer experience.
Respondents also identified “health care affordability for consumers” as a key trend likely to shape their 2025 organizational strategies, indicating a desire to develop more inclusive products and services, as well as to expand services and hours for virtual health and alternative sites of care, invest in consumer-facing digital technologies, and enhance operational efficiencies.
The survey responses suggested that health plans and health systems are prioritizing different goals and approaches for 2025. Most health plans are primarily focused on adopting transformative technologies, including generative artificial intelligence. In contrast, health systems are more focused on strengthening their core legacy business technologies rather than investing heavily in digital tools and transformative technologies, Deloitte found.
Nearly 60% of health plan respondents expect that recent and upcoming regulatory changes will influence their organizational strategies in 2025. Issues that could potentially affect margins and medical loss ratios include adjustments to Medicare Advantage payment rates, Medicare drug-price negotiations under the Inflation Reduction Act, price-transparency regulations, stricter rules regarding mental health parity, and the 2025 Notice of Benefit and Payment Parameters.
THE LARGER TREND
While healthcare executives appear optimistic, Deloitte authors cautioned that challenges remain, including balancing growth, profitability and affordability of care for consumers.
Authors suggested executing a multidimensional growth strategy that includes retaining and acquiring consumers through improved experiences, trust and services.
They also advised being prepared to navigate the evolving competitive market and regulatory landscape, and to understand the needs of different groups and identify ways to make high-quality products and services more affordable, accessible, convenient and equitable.
Jeff Lagasse is editor of Healthcare Finance News.
Email: [email protected]
Healthcare Finance News is a HIMSS Media publication.
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