Hospital

Financial challenges consistently rank among the top concerns of hospital executives. A key component driving this challenge is rising healthcare costs. According to Centers for Medicare & Medicaid Services (CMS), healthcare spending will increase 5.5% per year from 2017 to 2026 and will total 19.7% of the U.S. economy in 2016. Part of these rising costs are associated with greater spending in areas such as Medicare and Medicaid.

Another significant healthcare trend in the U.S. is a growing population that is aging. Between the years of 2016 and 2030, the population in the United States is predicted to increase by approximately 11% to 359.4 million people. Within this time period, those aged 65 and older are estimated to increase by 50%. Furthermore, according to the Association of American Medical Colleges (AAMC), by 2030 there is expected to be a shortage of non-primary care specialists of between 33,800 and 72,700 physicians.

While these trends no doubt present significant challenges for hospitals, new technologies are creating new opportunities. One example is telehealth, a mechanism to efficiently deliver, high quality specialist care at significantly lower costs.