What’s Next for Healthcare in 2025?

?? Did you have any healthcare predictions for this year? Which do you hope to see happen (or not) in 2025???

As we kick off the new year, I wanted to revisit a post I shared last month in response to LinkedIn’s Big Ideas in Healthcare roundup. Here are my predictions for our industry in the year ahead in case you missed them:?

Even though we have already seen major changes just in these first few weeks of January, I’ll break down each of my predictions, viewing them through the lens of what I strongly feel we should continue to focus on in our industry during this time of immense uncertainty.

?? Value-based care will dominate the payment conversation

Cost-saving and affordability will likely continue to be a big focus over the next year, so there is an opportunity to introduce value-based care to the center of these conversations.??

As I mentioned in my December newsletter reflecting on last year’s healthcare trends, many organizations continue to look for ways to engage in new alternative payment models (APMs). Providers are seeking growth opportunities and new ways of working during a time of economic uncertainty that our traditional payment models were not designed to address (high labor and supply costs, inflation).??

A recent Deloitte Healthcare Outlook survey found the majority of health plans and health systems consider organizational growth and consumer affordability as ongoing priorities across the industry this year.??

I believe the health tech industry specifically will have an increased role in advancing healthcare and advancing adoption of these models. As we think about what is needed to support organizations in their value-based care journeys, technology is a major area of opportunity to help improve administrative processes, outreach and engagement with members, and provide opportunities to create access and efficiencies.

Value remains a necessary driver of these efforts and dialogues, regardless of the larger industry dynamics or economic landscape. Putting quality patient experiences at the center of these efforts will be key to tackling challenges of high-cost, low-quality care –?allowing payors and providers alike to focus on providing better care, more efficiently.??

???????? Health equity should remain a priority but will shift in terms of how we talk about it?

As someone who has worked in healthcare for over three decades, I see a need for continued focus on equity across our industry. Each community and population have different health needs and disparities, and no two groups are going to see improved outcomes using the same intervention strategies.?

I sincerely hope the efforts we have focused on do not go away entirely. Healthcare systems have invested a great deal of time and resources over the last two decades to ensure we are thoughtful about providing equitable access and care to vulnerable populations –?whether that be the elderly, people of color, folks in the LGBTQ+ community, those living in rural areas, and more.

While I sincerely believe in the need to continue our focus on this important work, I could also see “health equity” being rebranded or rehoused under other functions within health organizations. And while the new administration will likely shift the focus of health through a different lens (perhaps everyday wellness and physical fitness), we should continue to look for opportunities to engage underserved populations through community-based efforts. Providers should ensure they have the right strategies and community partners to help achieve whole-person health and wellness across all communities served.?

As noted under my value-based care prediction, many healthcare executives cited growth as their primary focus for the year ahead, with Deloitte noting health equity could shift to become a business imperative in service of those efforts. Health equity work can help both payers and providers acquire new patients, while at the same time allowing health systems to close gaps and improve outcomes across vulnerable and underserved populations.??

Whichever way “health equity” ends up shifting, patient engagement and data are the heart of these efforts – and those aren’t going away any time soon. Providing affordable, quality care keeps patients engaged, making them more likely to seek preventative care and early intervention, which drives better long-term health outcomes. If we have the data to highlight disparities and make the case for the value created in doing this work, I don’t see it going by the wayside. While we may likely shift how we talk about health, the work to improve outcomes across populations will continue.??

?? Healthcare will focus on collaboration over consolidation (but not for long)

Considering larger economic and inflationary uncertainty, I predict the healthcare industry will prioritize strategic partnerships and collaboration over consolidation and traditional mergers –?at least in the first part of the year.??

Nearly a decade ago, we saw many mega mergers across major players in the healthcare industry. Since then, our industry has shifted to deals among smaller players. Ernst Young called 2024 a “reset year,” citing that many life science and healthcare companies are instead focusing on more collaborative, strategic partnerships. This is especially true for systems at the regional and local levels versus national or multi-national organizations.?

A recent Health Services Deals Outlook report from PwC cited a 9% decrease from 2023 in the number of total deals in the healthcare industry. However, deal volume last year was nearly 70% higher than pre-COVID figures, showing that organizations are increasingly returning to these mergers and acquisitions following the pandemic.??

Solving healthcare’s biggest challenges requires convening diverse voices and disciplines, especially as we look to bridge the gap between innovative digital capabilities and the many parts of our system that are still analog. The most efficient, value-driven way to do that often comes through collaboration and partnerships versus traditional mergers and acquisitions.

?? Notable predictions from other industry voices

Many thought leaders in healthcare had great predictions for 2025, including much needed digital innovation in Medicaid programs, systematic caregiver support, the rise of data usage in behavioral health, and the topic on everybody’s minds, AI.?

I continue to be optimistic around the potential of AI and other digital health tech solutions that help drive down the cost of care and enable providers to operate with efficiency.??

However, true progress with AI will continue to be incremental, especially as we focus on data security/privacy needs around this technology. A lot of existing models use large stores of clinical data, but the ability to use that data safely and ethically is the biggest limiting factor to scaling this technology.??

The ability to use critical thinking to judge AI outputs will be most important, especially in healthcare and as we see the potential for regulatory standards to relax this year.??

Looking Ahead + Final Thoughts?

As initially mentioned, there is a level of uncertainty that lies ahead for our industry, just as there has been with any transitional period in the US. I hold firm in the need for our industry to remain vigilant against misinformation and maintain our focus on providing accessible, quality care.????

Looking ahead to February, I’ll stick to a favorite topic of mine—value-based care—and everything you need to know for this model in 2025.?

Stay tuned! Until next month.?

- Ruth ????

Have an idea for a future topic or questions in the world of healthcare? I’d love to hear from you!