The Garage's Founder & CEO Top 5 Predictions for the Healthcare Industry in 2024
By Pranam Ben, Founder & CEO, The Garage
As we reflect on the lessons learned in 2023, it's time to look ahead and anticipate the changes that will shape the healthcare industry in 2024. Here are the top five predictions for the upcoming year:
#1: Expansion of 'Care Anywhere Strategies'. We anticipate the rise of more patient-centric models that shift care focus from traditional healthcare facilities to wherever the patient may be, whether at home or within their community. The COVID-19 pandemic has accelerated the development and adoption of strategies emphasizing the importance of meeting patients where they are. This trend, often referred to as "hospitals without walls" or "care at home," will be driven by digital-first approaches, emphasizing the importance of providing care beyond the confines of physical facilities. An example of this is remote patient monitoring, which is evolving from a program to payor reimbursement.
#2: Ecosystem Disruption and Unlikely Handshakes. The forces driving ecosystem disruption, including consumerism, specialization, venture capital activity, acquisitions, and the influence of retail and big tech, will continue to shape the industry in 2024. We expect more creative and calibrated collaborations and handshakes across the sector, building on the lessons learned from the past two years.
#3: AI Outlook in Healthcare. LLMs, ML, and GenAI will transition significantly from experimental pilots to mainstream adoption with a data-first approach in 2024. AI is already making significant inroads in healthcare, from diagnostic tools to personalized treatment recommendations. Leveraging a data-first approach, AI initiatives such as machine learning and genetic applications will face short-term challenges, such as the need for robust regulatory frameworks, but promise long-term gains in revolutionizing healthcare delivery, improving patient outcomes, and driving operational efficiencies is substantial.
#4: Advancement of Value-Based Care. Despite a perceived slow start and mixed results over the last decade, 2024 is expected to be a pivotal year for the adoption of value-based care. As of 2021, 60.5% of all healthcare payments are tied to some quality or value measurement level. This shift will extend into managed care, specialty care, and Medicaid, marking a new frontier in healthcare delivery. While macro variables will follow predictable patterns, the overall trajectory for value-based care is set to improve.
#5: Rise of Population Health Management. Population health management is poised to become the preferred platform for providers and payers, supporting value-based care delivery. In addition, this underscores the growing recognition of the importance of addressing social determinants of health and disparities in healthcare access. At the same time, CMS is focusing on increased incentives and investments to improve national health by accurately tracking the population's health and its subgroups. The pressure on the healthcare industry to reduce medical costs, rising use of information technology, and increasing diseases are driving the market for population health management. This trend reflects a collective effort to make healthcare more accessible and affordable for all, aligning with the industry's commitment to improving the overall healthcare experience.
As we look forward to 2024, these predictions offer a glimpse into the transformative changes that lie ahead for the healthcare industry. Regardless of the outcomes, the collective progress toward a more accessible and affordable healthcare experience for all is a cause for excitement and optimism.