The Future of Healthcare, as we know it, is changing at an explosive rate especially in conjunction with the economy as well as the introduction of the Patient Protection and Affordable Care Act (PPACA). The PPACA was enacted in 2010 and has provisions and standards which will become effective through 2015 adding to the evolution of healthcare. Additionally, the state of the economy is affecting all Americans, requiring all of us to do more with less
DPR Construction surveyed 42 leaders in the healthcare industry as to what they predicted the future holds for the healthcare industry. Following are the results of the survey which focus upon wellness, integration, and community embeddedness:
- There is a care shift to prevention and wellness, services which may be performed in a primary care setting or other non-hospital setting, which may shift hospital emphasis to high acuity patients and services. Hospitals may become smaller in size due to shift in scope and the treatment of fewer lower acuity patients.
- Healthcare systems are continuing to merge together creating fewer systems, each consisting of more facilities. This merging trend may decrease the number of not-for-profit facilities as some of these are merging with for profits. Additionally, the trend is toward physician practices becoming a part of healthcare systems rather than operating independently.
- Outpatient services will become more of an emphasis due to a shift toward patient centered healthcare and the creation of Medical Homes and Affordable Care Organizations, again supporting the transition to focusing upon prevention and wellness.
- Specialty areas will continue to focus upon the aging population and will center on services which are most profitable such as cardiac, oncology, and arthritis.
- Health Information Technology will continue to become a primary interest which will require facilities to increase spending for things such as electronic medical records, telemedicine, home monitoring systems, and point of care. Increased costs may be due to implementing or upgrading these systems as well as possible facility changes to accommodate these systems and perhaps the addition of staff to implement and manage these systems.
- The economy will continue to be an issue. Facilities have less cash on hand necessitating the need for external funding, also calling into question the ability to repay amounts borrowed. Lending institutions are beginning to delay funding decisions making it more difficult to obtain the funding requested and in a timely manner.
- Renovation and re-purposing of facilities will become more important. Generally, it is much more cost effective to renovate an existing building than to start over fresh with a brand new building. The condition of the facility is something that affects patient satisfaction and is therefore an item of interest. Patients are gravitating toward state-of-the art facilities requiring each facility to “keep up with the Joneses”.
- There is shift toward being “green” as patients are beginning to value organizations which are actively moving toward saving operational costs through “green” measures.
- Delivery methods are changing in order to provide reduced costs, collaborative efforts to reduce wastes and increase efficiencies.
- Demographics are changing and care will need to accommodate the aging population, including both aging illnesses, increased numbers of patients, and sufficient number of physicians to treat the increased number of patients.
These predictions, along with healthcare legislation slated and pending and changes in the economy, provide additional challenges for the healthcare industry. Competitive advantage will be much more difficult to obtain.
The merging of healthcare facilities is just one symptom of the struggle for survival that hospitals are facing. The stronger,larger health care providers can absorb financial impacts from the medicare cuts easier.Simply stated, since Medicare is a giant to be faced,the hospitals must become giants themselves in order to compete with the contender.
Katherine,
thank you for the great comment we have seen many industry insiders expressing the same concern, which is a trend that is continuing and extending to giant managed care organizations which are forming across the country
I believe that it will be many decades before hospitals become smaller due to the emphasis of prevention and wellness. Since this shift is is becoming more noticeable now, hospitals will still have to address the existing conditions of patients who ignored this aspect of health. Back in the 90s when I attended elementary school, prevention and wellness was emphasized through programs like Jump Rope for Heart. However, I have seen fewer programs possibly due to financial issues, that allow for teachers and schools to have the time to include more extensive health education into the curriculum.
I agree that there seems to be less of a focus on wellness via prevention at the early educational level. The one positive thing that we have seen in schools is the new approach to lunches which try to incorporate lower calorie healthy and organic options. Unfortunately this movement has only permeated schools slightly and those in neighborhoods of a higher socio-economic bracket seem to have benefitted the most