Healthcare Trends to Watch in 2024
Some key trends to watch from some of my colleagues at FTI in their article The Evolution of Healthcare: Trends to Watch in 2024.
Commercialization of Healthcare. Over the past decade, private equity’s presence in the healthcare sector has significantly accelerated, with annual deal values soaring from $41.5 billion in 2010 to $119.9 billion in 2019. This rapid increase has drawn increased scrutiny from lawmakers and researchers, particularly concerning inflated pricing, limited competition, and decreased quality of care linked to private equity-backed organizations.Mergers and Acquisitions (M&A). In 2023, the M&A landscape was significantly impacted by high interest rates and reduced credit flows, leading to a noticeable decrease in deal activity, including in the healthcare sector. As financial sponsors adapt to these changing economic conditions, 2024 is poised to see a strategic shift affecting where dollars are invested within the healthcare sector. There is decreased focus in physician practice management roll-up deals, and more interest in healthcare IT and pharmaceutical services. Digital Health. Digital patient engagement is already a $200+ billion market and is expected to grow by over 18% annually through 2032.8 Though the healthcare experience is improving for patients, the pace of that improvement continues to lag behind other consumer-driven industries. Patients are still met with phone calls, paperwork, delayed responses, and frustrating or ineffective technology interfaces. Key areas of focus include data security, cost reduction/workflow efficiency and improved patient experience/quality of care,
The article has much more detail include thoughts on trends for the post-COVID market for diagnostics.
