The healthcare sector is in a constant state of evolution, driven by technological advancements and changing patient needs. Over the last 20 years, I have witnessed firsthand how even the simplest technology can revolutionize our industry for the better. Innovations are optimizing and automating processes, streamlining care delivery, and promising enhanced efficiency and improved patient outcomes. I’m sharing some key trends emerging or gaining adoption in 2024 that can help your organization move toward interoperability and transformation.
Embracing Advanced Data Strategy and AI
1. Artificial Intelligence
AI is creating a transformative wave in healthcare, assisting medical professionals by analyzing patient data and medical literature to provide crucial insights for informed decision-making. The rise of generative AI, capable of creating authentic content such as text and images without direct programming, is set to propel automation to new heights. According to a Bain & Company survey, generative AI can significantly reduce administrative burdens and maximize office efficiency.
While AI and machine learning have immense potential to improve healthcare in a variety of ways, I’m seeing few companies rise to provide the kind of value needed to drive change long term. Piloting these solutions becomes critical and like any other technology ensuring there is an infrastructure (read: people and processes) in place to ensure meaningful change is important.
2. Cloud Computing and Hosting
Cloud computing and hosting is revolutionizing healthcare by eliminating the need for extensive on-site infrastructure, thereby reducing capital expenses. While not a new trend, the adoption of a pay-as-you-go model offers flexibility, allowing medical facilities to cut costs by paying only for the specific functionalities and services they use. The global cloud computing market is projected to reach $2.4 trillion by 2030, growing at a CAGR of 20%. Cloud platforms facilitate the integration of AI, machine learning, and data analytics into medical applications, enhancing diagnostic capabilities, treatment planning, and overall patient care delivery.
In healthcare, public clouds like AWS and Azure are becoming the norm. There are still inherent risks with these solutions and some institutions are still choosing to maintain their own data centers. Every other week you’ll see an impactful cybersecurity event for hospitals, physicians and vendors alike. Ultimately, I think the trend will bend toward a new level of cybersecurity and or PHI standards for healthcare that drive closer to Europe’s GDPR.
3. Data Explosion & Blockchain
Data is a critical asset in healthcare, with its volume growing faster than in many other industries. The healthcare data storage market is expected to grow at a CAGR of 15.3%, reaching $69.31 billion by 2032. Blockchain technology is becoming an essential tool for managing this data, providing secure and efficient storage solutions that mitigate the risks of cyberattacks and ensure the authenticity of information. Intrusion detection systems (IDS) are also becoming preferred security methods to safeguard healthcare data from potential threats. Implementing comprehensive cybersecurity protocols, including encryption, access controls, and regular security audits will fortify your organization’s defense against evolving cyber threats.
Navigating the Evolving Landscape of Dealmaking
4. M&A Activity
The healthcare M&A landscape is evolving, with increased activity in the life sciences sector and a convergence of payers and providers. Private equity and strategic buyers are shaping this landscape, focusing on value creation rather than mere asset accumulation. Interest rate changes will influence the pace and direction of these deals, pushing organizations to innovate and adapt. Amid economic uncertainty, healthcare M&A is likely to focus on stable, mature, and profitable businesses.
The trend of larger health systems acquiring smaller practices and hospitals is expected to persist. This will likely lead to more standardized care protocols, enhanced data interoperability, and improved patient outcomes. Healthcare organizations will invest in technologies that enhance data sharing, patient engagement, and operational efficiencies.
Other Notable Trends
5. Mental Health Technology
Mental health technology is rapidly evolving, with support now accessible on any electronic device. Innovations such as video game treatment for ADHD, smartphone therapy with AI assistants, and electronic symptom monitoring are revolutionizing mental health care. These technologies provide new ways to support patients and improve mental health outcomes.
6. Telemedicine
Telemedicine is transforming healthcare delivery, offering numerous benefits to patients and physicians. The global telemedicine market is projected to grow from $94.44 billion in 2023 to $286.22 billion by 2030. Virtual care provides cost-effective solutions, enabling remote patient monitoring and improving access to healthcare services.
Conclusion
As we enter into the second half of 2024, the healthcare industry is poised to face transformative challenges and seize new opportunities. By embracing innovation and maintaining a forward-looking vision, healthcare organizations can navigate cost pressures, leverage advanced technologies, and capitalize on evolving market dynamics. These efforts will ultimately improve patient outcomes and operational efficiency and can allow organizations to position themselves at the forefront of healthcare transformation.
