6 Big Takeaways from Sword's Executive Circle

At Sword Health's recent Executive Circle event, industry thought leaders came together to dig into key trends that will define 2025 and beyond, including cost pressures, digital transformation, and the need to drive better patient outcomes.?

The day began with an insightful discussion between Brian Marcotte , former president and CEO of the National Business Group on Health; and Christina Farr , a New York-based managing director with Manatt, Phelps & Phillips, and a prominent digital health investor and former health-tech reporter for CNBC.

Here are six critical takeaways from their fireside chat, highlighting where the industry is headed and what it means for both employers and solution providers:

As healthcare costs continue to outpace inflation, employers are feeling immense pressure to control costs. Going into 2025, cost containment will be the number one priority for most employers. This cost pressure will push companies to be more innovative in their healthcare plan designs, seeking out solutions that offer better value for employees and drive more toward their bottom lines.

Employers expect their healthcare spend will jump by almost 8% in 2025, according to the Business Group on Health.

In a cost-conscious environment, employers are scrutinizing their healthcare spend more than ever. Health solution providers will need to be crystal clear about their value proposition, with an emphasis on outcomes and cost reduction.?

If a solution isn’t showing engagement or demonstrating clear outcomes, it risks being cut from employers' offerings. Conversely, solutions that show strong ROI will see increased employer investment. For employers, it’s about doubling down on what works and trimming what doesn’t.

Historically, digital health solutions were focused on addressing large populations, such as those with chronic conditions like diabetes or obesity. But these solutions often struggled to engage users effectively. Now, there's a clear shift towards outcomes-driven care.

We’re entering an era where digital health providers will need to deliver measurable results, particularly in harder-to-treat conditions, such as opioid addiction. These areas are ripe for innovation because the potential impact on patient lives—and healthcare costs—can be transformative.?

Another important trend is the growing number of people, particularly among younger generations, who are going without primary care physicians (PCPs). This has led to a decline in preventative healthcare measures, such as wellness screenings and flu shots, and an increase in emergency room (ER) visits. For many, especially millennials, the mentality is to only seek care when something is wrong, bypassing primary care altogether.

This is a costly and unsustainable way to manage health, and employers are starting to feel the impact. Engagement with preventative care needs to be addressed, or employers will continue to see rising costs from increased ER visits and delayed treatments.?

At the same time, virtual-first care solutions such as the programs offered by Sword are gaining traction with employers as a way to bring employees back to primary care through a more consumer-centric and convenient experience.

Healthcare needs to be less boring and more engaging, especially to engage millennials and Gen Z. Traditional outreach methods—such as sending emails encouraging people to get flu shots—are failing to resonate with younger generations, who are used to being engaged in more dynamic and creative ways, such as through social media and interactive digital experiences.

There’s a clear opportunity here for healthcare providers to rethink how they engage their users, particularly younger ones. Borrowing from the entertainment industry or adopting more innovative communication platforms such as TikTok, can help bridge the gap.?

The role of artificial intelligence (AI) in healthcare was another hot topic during the Executive Circle. AI has immense potential to revolutionize diagnostics, especially considering that medical knowledge is advancing at a pace that no human can keep up with. Misdiagnoses are still a leading cause of medical malpractice claims, and there's a clear need for technology to support physicians in making more accurate assessments.

In fields like musculoskeletal care, for instance, only a small percentage of surgeons consistently deliver top-tier results, while many patients may be on the receiving end of subpar care due to diagnostic inaccuracies. As AI continues to develop, it will play an even larger role in improving diagnostic accuracy—and actually delivering front-end care.

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