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Eric Lisle, Chief Executive Officer, President, Co-founder

Written by Eric Lisle, Chief Executive Officer, President, Co-founder

Eric's Reflections on the 2023 Healthcare Landscape

Looking back on the evolving healthcare landscape of 2023, it’s easy to see that it was a pivotal year for our industry. In January, I made three predictions about the year ahead. Now that 2023 is coming to a close, I’m reflecting on those predictions to see what movement we’ve seen in the space and offer a glimpse into what lies ahead in 2024.

“In 2023, I anticipate continued pressure on healthcare leadership teams to find and recruit top talent.”

The pressures on healthcare leadership to recruit and retain top talent have intensified, forcing organizations to reevaluate their human resource strategies. According to a 2023 survey, 58% of physicians and 71% of medical students report feeling burnt out in their roles. The growing demand for healthcare services means the industry must not only hire more staff but also support current employees to provide the best care. In response, companies have revamped their hiring approaches to prioritize employee wellbeing and longevity. Prioritizing employee satisfaction has positive downstream effects on patient care, enabling a higher level of service.

“Expect additional consolidation in the payor space.”

In 2023, there have been a number of cross-market mergers (those which are not in direct geographic connection), which has led to many hospitals and health systems raising their prices and reducing or completely eliminating some service lines, thereby reducing access to care.

In April, Kaiser Permanente and Geisinger announced their plans to merge. The systems operate in disparate parts of the country, but their combined operating revenues ($95 billion and $7 billion respectively), made this announcement one of the largest merger discussions of the year.

Within the decade, the current insurance system will likely be replaced by these mega-partnerships, as well as partnerships between providers, employers, and tech companies offering tailored healthcare options for specific populations.

“The ongoing health equity trend will continue with a renewed focus on rural markets.”

Closing the gaps in healthcare access for rural communities remains a high priority. Leveraging technology and resources, healthcare organizations have partnered with local providers to deliver specialized care in the communities they serve. Rural healthcare providers need to be empowered through partnerships and initiatives focused on bringing technology and resources to these communities. In July, the Biden-Harris administration awarded $129 million in Emergency Rural Health Care Grants to improve healthcare facilities in rural towns across the nation. These grants have assisted rural communities to purchase medical equipment, build new primary care facilities and address food insecurities.

There have been a number of industry shifts in 2023, and I anticipate more in 2024 and beyond. Soon, I’ll share my healthcare predictions for 2024. Tell me in the comments – what was the most surprising healthcare industry announcement of 2023?

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