The landscape of healthcare and life sciences is rapidly changing, influenced by challenges from the Covid-19 pandemic. In 2024, several trends are emerging that could greatly affect the industry, said Dr. Asif Dhar, U.S. life sciences & health care leader at Deloitte, in a Tuesday report.
Here are seven key trends that are likely to shape healthcare in 2024, according to Dhar:
1. Generative AI could drive digital transformation: The use of AI could be a “co-pilot” for care management, early disease detection and core operations, Dhar said. It could also address clinician burnout by automating different administrative tasks and making healthcare more affordable.
Still “organizations will likely need to ensure they have an updated technology infrastructure (including cloud), trust and compliance frameworks, data modernization, and operational workflows to fully support this new capability — all of which could spur a new generation of digital transformation in the industry,” Dhar said.
2. “Trusted technology frameworks” could move along AI adoption: AI has the potential to greatly affect patient care, safety and health equity. Because of this, there may be a greater focus on ethical, legal and policy frameworks, the report stated.
“These trusted technology frameworks could be deployed along with new ways to work to optimize efficiency while addressing the trust requirements of consumers, clinicians, regulators, and stakeholders. … In this early stage of adoption, a trustworthy and ethical approach to AI could help to make care more accessible and equitable,” Dhar said.
3. Consumers will take charge of their health: Consumers are expected to make more informed decisions about their health due to receiving more health data. High-deductible health plans, virtual health and a growing understanding of the link between diet and health are also shaping consumer habits, the report stated. Consumers will expect more from the healthcare system, which means “organizations should focus on delivering results,” the report said.
4. Employers will play a larger role in employee health: Employers that support the health of their employees will have a more productive workforce. Dhar said that employers are looking beyond “traditional health insurance.” He anticipates seeing self-insured employers explore strategies like direct contracting, on-site care and virtual health.
5. M&A activity may accelerate: Due to economic challenges in healthcare, there will likely be more mergers and acquisitions. While vertical and horizontal consolidation is expected to continue, Dhar anticipates a new type of integration.
“Digital-diagonal integration occurs when a company uses technology from outside industries to build platforms that reduce friction by bringing care closer to their customers,” Dhar said. “This will likely occur in areas where traditional incumbents want to diversify revenue. Non-incumbents could use digital-diagonal integration to deliver a more consumer-centric, higher-value service at a lower cost than incumbents.”
6. Breakthroughs from data sciences will continue: AI could greatly change drug discovery by “extracting concepts and relationships from data.” Dhar expects that there will be research and development breakthroughs and curative therapies in cancer, neurodegenerative diseases and other illnesses in 2024.
“But drug-pricing challenges could spur experimentation with pricing models if new therapies push profit pools from health care organizations to life sciences companies,” the report stated. “Some financial services companies might see an opportunity in helping to figure out how to manage higher drug costs and bigger out-of-pocket costs for consumers. We could also see pharmacy benefit managers (PBMs) evolve as they respond to market pressure and consumer demand for more affordable and accessible drugs.”
7. Health equity will be more of an “integrated priority”: Healthcare and life sciences organizations will need to find ways to make their products more accessible to all patients. Health equity officers will have to work closer with the COO, CFO, CEO and the board.
“I expect health equity will continue to move beyond corporate philanthropy to core operations this year,” Dhar said.
Photo: rudall30, Getty Images
