2020 Business Trends
To find financial information that can help inform on business opportunities/challenges that business owners within the healthcare, skilled nursing, dental practices, food & beverage, franchise, infrastructure, and law practice industries will most likely face in 2020.
- The trends that are expected to be witnessed within the healthcare industry in 2020 include "rising health care costs, changing patient demographics, evolving consumer expectations, entrance of new players into the market, and the use of complex health and technology ecosystems."
- These trends are expected to influence investment in healthcare and stakeholders should go with the tide. Stakeholders need to invest in value-based care, innovative care delivery models, advanced digital technologies, data interoperability, and alternative employment models in 2020. These investments will facilitate preparation for the coming uncertainties and the building of a smart health ecosystem.
- Between 2019 and 2023, global healthcare spending is expected to rise at a CAGR of 5%, pointing to the availability of many opportunities within the sector in 2020 and beyond.
- The above CAGR is a significant growth rate that points to new business opportunities within the industry that healthcare business owners can position their businesses to benefit from.
- In 2020, medical cost trend is expected to be 6% representing a slight increase from 5.7% in 2019.
- To drive medical cost trend down, employers and business owners within the healthcare industry are taking a more active role in managing healthcare costs. An example of this is in how employers are taking "an active role in negotiating contract prices themselves, setting up provider networks, and building a parallel health system to take care of employees at more manageable costs."
- In 2020, price will continue to be "the primary driver of healthcare spending and it is expected to grow at a faster rate than utilization."
- In 2019, healthcare data breaches cost the industry an estimated $4 billion and this cost is expected to be worse in 2020. The problem of data breaches within the healthcare industry is expected to be a challenge within the industry in 2020.
- In 2020, businesses within the healthcare industry will be working to achieve financial sustainability by reducing the cost to deliver and finance high-quality and effective care for patients.
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