By Ayla Ellison for Becker’s Hospital Review
There are seven healthcare industry sectors ripe for growth, consolidation and investment in 2020, according to a report from Epstein Becker Green and EBG Advisors.
Based on their experience advising clients in the healthcare industry, the attorneys and advisors who authored the report predict the aging baby boomer population, advances in technology and the goal of reducing healthcare costs will drive transformation in the healthcare industry this year. According to the report, the following seven sectors will see growth, consolidation and increased investments in 2020:
- Hospitals and health systems will expand both regionally and nationally to increase capital and achieve economies of scale in connection with investments in new facilities and services as well as advanced capabilities to better manage care.
- Because physicians act as “key quarterbacks” in controlling healthcare costs, they’ll see more competitive offers from hospitals, health plans and other organizations.
- The aging baby boomer population will drive increased demand for long-term care services.
- Funding for behavioral health services, including those to treat substance use disorders and mental health illnesses, will increase.
- Health information technology, including analytics, artificial intelligence, and mobile apps, is poised for growth because of its key role in helping providers deliver high-quality healthcare at a lower cost.
- Growth in the medical device and pharmaceutical sector will be driven by new scientific discoveries being developed to treat certain conditions more effectively at a lower cost.
- Enrollment in Medicare Advantage plans will increase as the number of Medicare enrollees grows and the Medicare program adopts bundled payments, risk-based initiatives and other models of care.