Healthcare is an ever-evolving industry, and as we move into 2023, there are a number of challenges are expected to arise.
The economy is already headed toward recession, and experts have made it quite clear that this year will be the most difficult one for the global economy.
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Inflation in the US is already touching its highest pick ever and Eventually, this will have an impact on the healthcare sector as well. Since healthcare is one of the major economic contributors.
Therefore, it is clear that healthcare would experience some significant difficulties in 2023.
However, healthcare providers must be ready for what is coming and need to be proactive in the sector to avoid becoming the victim of the recession wave.
Today, we’ll talk about how inflation might impact healthcare in 2023. So let’s talk about the current scenario in detail and what the alert signs are for the healthcare system.
Top 5 challenges expected to be faced by healthcare in 2023
From the prediction of experts regarding inflation and recession. We found that there are six major challenges that can be faced by the healthcare industry throughout the year.
#1 High cost will slow down the growth rate
Both the price of generic medications and the raw materials used to make them are touching at record high prices.
The reason is, there is a simple economic term that says if the cost of manufacturing increases then the cost of selling will automatically increase.
Additionally, healthcare businesses must maintain their operational costs in order to be profitable, but due to high inflation, increases in operational costs like rent, employee pay, and maintenance costs will force these businesses to raise their service fees.
And eventually, patients won’t be able to afford treatment facilities, which would have a negative impact on the company’s revenue and decrease the rate of expansion of the healthcare industry.
#2 Recruiting and retaining staff
According to the statistic from Fitch ratings, Health care employment opportunities peaked in September 2022 at 9.2%, more than double the 4.2% average rate between 2010 and 2019.
But still, there is a shortage of healthcare professionals in certain fields, such as nursing and primary care, particularly in rural and underserved areas.
This will make it difficult for many people to access the care they need, and it will also put a strain on healthcare systems as they try to provide care with a limited number of staff.
However, advancements in technology, such as telemedicine and AI, may lead to changes in the skills and roles needed in healthcare, which could impact recruiting and retaining staff.
#3 Investment in digital health
Investment in digital health can take many forms, including funding for startups developing new health technologies, venture capital investments in digital health companies, and strategic partnerships between healthcare providers and technology companies.
Some examples of digital health technologies include telemedicine, electronic health records, and health-related mobile apps.
Investment in this field will likely decrease as inflation touches a high peak. The flow of investment in the market especially in the healthcare sector can be low with the increasing inflation.
Cyber attacks are the biggest concern for healthcare. As healthcare becomes increasingly digitized, the risk of cyberattacks increases.
Cybersecurity breaches can lead to the loss of sensitive patient data, disruption of operations, and damage to an organization’s reputation.
In 2022, as per the report, there were more than 4,100 publicly reported data breaches, exposing around 22 billion records. According to the cyber security publication Security Magazine, the numbers for 2023 are predicted to be up to 5% higher.”
With the growing amount of personal health data being stored and shared electronically, cybersecurity will become increasingly important to protect patient privacy and prevent data breaches.
#5 Supply chain
In the next few years, the healthcare supply chain is expected to experience a number of changes and challenges.
One major trend is the increasing focus on cost-effectiveness in healthcare supply chain management. With healthcare costs on the rise, there is growing pressure to reduce costs and improve efficiency throughout the supply chain.
This may involve sourcing cheaper raw materials, consolidating suppliers, or implementing new technologies such as automation and data analytics to improve logistics and inventory management.
Another trend is the growing use of technology in healthcare supply chain management.
Advancements in artificial intelligence and machine learning are enabling more accurate forecasting, real-time tracking of products, and improved visibility and traceability throughout the supply chain.
Blockchain technology is also being explored for its potential to increase trust and transparency in the healthcare supply chain.
Overall, the healthcare supply chain is expected to undergo a number of changes and challenges in the coming years.
Despite these challenges, healthcare providers, payers, and patients will have to work together to address these challenges and ensure that healthcare remains accessible and affordable for all.
This will require increased funding, better coordination and collaboration, and a focus on innovation and new technologies that can improve the quality of care and reduce costs.
Additionally, a renewed focus on prevention, early intervention, and patient-centered care will be crucial in addressing these challenges.