Healthcare Providers Expect Positive Market Development Despite Changing Parameters
Optimism in an Ever-Changing Healthcare Industry
Around the world, healthcare service executives are optimistically looking toward the future – and predicting annual growth rates of over 6 percent in developed markets and of around 11 percent in emerging markets for the next five years. At the same time, trends such as consolidation and industrialization in the healthcare industry, increasing cost and quality awareness among patients and insurance companies, and the growing global demand for skilled personnel play a significant role for many companies’ business models. This is according to a recent survey that was conducted by the analysis and news platform Healthcare Business International (HBI) in cooperation with Siemens Healthcare, and presented at a high-profile industry meeting in London (see: The Healthcare Business International 2016 Conference).
Many Trends are Rated Similarly in Developed and Emerging Markets
One result worth noting is that there were no major differences in the answers regarding the main challenges that healthcare providers are facing, irrespective of the market’s level of development. For example, executives in Europe and in emerging markets alike rank recruitment and retention of skilled workers as being important for a company’s future development. It is also worth noting that companies around the world see themselves as well-equipped to overcome the challenges of staffing.
Consolidation Continues – with Medical Technology as a Pillar of Market Position
Executives worldwide consider the changes in cooperation with private insurers – as well as quality indicators that are increasingly relevant for payment – to be prominent aspects of this change. According to the survey, the fact that patients increasingly have access to information via the Internet and can choose their service providers will also play a role in the future healthcare market. At the same time, the surveyed executives expect the global trend of consolidation and internationalization in the healthcare industry to continue for another five years. In the process, private equity could increasingly dominate the service-provider landscape, especially in emerging markets.
The survey showed that investments in new medical technologies will also be of crucial importance. Globally, companies regard technology as essential pillars of their market position that not only result in additional expense, but also generate revenue. In fact, many executives expect a remarkably positive development for their company. The majority of the respondents in both developed and emerging markets think the odds are good that their company will grow even faster than the healthcare market in general over next five years.