HealthcarePracticeWhattoexpectinUShealthcarein2024andbeyondAnewperspectiveonhowtechnology,transformationefforts,andotherchangeshaveaffectedpayers,healthsystems,healthcareservicesandtechnology,andpharmacyservices.byNehaPatelandShubhamSinghal©GettyImagesJanuary2024Theacutestrainfromlaborshortages,inflation,andendemicCOVID-19onthehealthcareindustry’sfinancialhealthin2022iseasing.Muchoftheimprovementistheresultoftransformationeffortsundertakenoverthelastyearortwobyhealthcaredeliveryplayers,withhealthcarepayersactingmorerecently.Evenso,health-systemmarginsarelaggingbehindtheirfinancialperformancerelativetoprepandemiclevels.Skillednursingandlong-term-careprofitpoolscontinuetoweaken.Eligibilityredeterminationsinastrongemploymenteconomyhavehurtpayers’financialperformanceintheMedicaidsegment.ButMedicareAdvantageandindividualsegmenteconomicshaveheldupwellforpayers.Aswelookto2027,thegrowthofthemanagedcaredualspopulation(individualswhoqualifyforbothMedicaidandMedicare)presentsoneofthemostsubstantialopportunitiesforpayers.Onthehealthcaredeliveryside,financialperformancewillcontinuetoreboundastransformationefforts,M&A,andrevenuediversificationbearfruit.Poweredbyadoptionoftechnology,healthcareservicesandtechnology(HST)businesses,particularlythosethatoffermeasurablenear-termimprovementsfortheircustomers,willcontinuetogrow...
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