Some current trends and changes in the hospital/health system space include the following:
- Hospitals currently face structural challenges.
- Focus on value-based care as a solution has declined.
- There is a shift from an inpatient to an outpatient setting.
- Hospitals are looking to provide integrated services through M&As.
- Bigger players are not able to go for acquisitions even though cash might be available.
- Government funds helped hospitals bear increased costs during the pandemic.
- Government funds have dried up for non-profit institutions.
- Pessimistic projections show profit margins declining by 133% in 2022.
- Shrinking margins are primarily attributed to rising labor costs and workforce and supply chain issues.
- Radical restructuring of operation models is seen as a way forward.
- Public hospitals are considering restructuring into private not-for-profit standalone organizations.
- Transparency with the community during the restructuring process will be important.
- Buy-in from all stakeholders and proactiveness is becoming more important.
