In a year that promises to be very challenging for the healthcare industry, health information technology spending tops the list, according to a survey released by PricewaterhouseCoopers. In addition to ongoing cost pressures and new customer demands, the report also predicts that payers and providers will likely need to undergo a strategy makeover as a result of new rules and payment models.
Below are the survey findings of the six top healthcare industry challenges in 2011:
#1–Booming business in health information technology
Boosted by new government regulations and tight deadlines by which to meet them, 2011 looks to be a record year for health information technology (HIT) spending. More than $88.6 billion was spent by providers in 2010 on developing and implementing electronic health records (EHRs), health information exchanges (HIEs) and other initiatives. This surge is a sign of technology’s critical place in health system improvement. Whether it’s establishing “meaningful use” of EHRs within provider organizations, working with multiple players to establish new population management models like ACOs, or using technology to drive down costs in pharma/life sciences companies, more skilled resources are needed to pull it all off.
#2–Gearing up to redefine health insurance: From MLRs to insurance exchanges
Legislating coverage was the first step. Implementing coverage is the next. And, that implementation has new guardians. The percent of insurance premium dollars allocated to providing care, known as the medical loss ratio (MLR), will be a primary focus of the government and the health insurance industry.
In 2011, health plans must start reporting their MLRs for individual and small group health insurance for each state in which they do business. The deadline won’t be until 2014 for state health insurance exchanges to connect individuals and small businesses with health insurance, but states must apply for certification by January 2013 or let the federal government set up an exchange for them.
#3–ACOs: Is this the next big thing or not?
The health reform law will create a new type of care model, called the accountable care organization (ACO). It has already created a large amount of buzz within the industry, although less than a third (28%) of consumers surveyed by PwC were familiar with the term ACO. That will soon change. Will ACOs be the next big thing? Are they the 2010s’ version of HMOs? Under the health reform law, ACOs focus on managing a discrete Medicare population. However, ACO has already become a metaphor for the larger issue of population health management by disparate parties within the health system—parties that are looking for a new way to provide care while managing costs. Under this broader description, ACOs encompass a spectrum of models that include physicians, hospitals, payers, and vendors under a basic premise of shared risks and rewards based on patient outcomes.
#4–Nowhere else to cost shift: Consumers could continue to reduce utilization
In 2011, for the first time, most employers are expected to have a deductible of $400 or more built into their employer-sponsored health insurance. The trend in rising deductibles has been remarkably fast. In 2008 and 2009, the most common plan had no deductible, according to PwC’s survey of 700 employers. By 2010, the most common plan among employers surveyed by PwC had deductibles of $400 to $999. In addition, according to the PwC survey, high-deductible plans are now the primary plans for 13% of employers surveyed in 2010, up from six percent in 2008.
#5–M&A: Deals will bond the familiar and unfamiliar as organizations look to fill strategic gaps
Deal activity in all health sectors is on an upward trend that will continue into 2011. Companies will be looking for growth as well as to fill in services along the continuum of care. With continued low interest rates and more cash on hand, healthcare organizations will be encouraged to discuss deals that help them manage future risks and tackle costs. The activity could traverse unlikely terrain as suppliers buy providers, as health plans team with providers, and as pharma/life sciences companies get into more services along the care pathway. However, healthcare organizations could have competition for acquisitions. The number of private equity funds interested in healthcare is on the rise.
#6–Follow-me healthcare: Patients look to health organizations that are always on
Rapid innovation and the adoption of digital technologies are dramatically changing customer expectations of the health industry. Physicians and patients expect increasing amounts of health-related information, anytime and anywhere. Organizations realize that the best way to influence outcomes is to engage patients. And to engage them, the industry needs to understand how patients want to connect.
To read the full PricewaterhouseCoopers report.
Like what you’ve read? Follow Scott Public Relations on Twitter and sign up for the Einsight RSS feed!
Found this on MSN and I’m glad I did. Amazing article.
After I originally commented I clicked the -Notify me when new feedback are added- checkbox and now every time a comment is added I get 4 emails with the identical comment. Is there any means you may remove me from that service? Thanks!
Unfortunately, I cannot edit RSS feeds from this end. Go to your RSS feed aggregator and check the settings there to see if you can stop this aggravating behavior. If not possible, try cancelling the feed and re-adding it. Those would be my best suggestions. Admin.
I’ve been surfing online more than 3 hours today, yet I never found any interesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the net will be much more useful than ever before.
Wonderful learn, I simply passed this onto a colleague who was in search of this info. I’ve you bookmarked on Digg.
Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I prefer to use some with the content on my blog whether you don mind. Natually I give you a link on your web blog. Thanks for sharing.
The ad interests Congress to complete something urgently. On december 17th — White coat Wednesday — physicians through the USA will be calling around the members from Congress, reminding these people that exactly what they can or never do have serious and additionally long- achieving consequences regarding American retirees who depend upon Medicare.
Excellent! Your site has quite a few comment posts. How did you get so many people to view your site I’m jealous! I’m still studying all about article writing on the net. I’m going to look around on your website to get a better idea how to attract more people. Thanks!
Wow!, this was a top quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I procrastinate a lot and never seem to achieve anything
Hello admin, thanks for posting and link back to my site.
Generally I wouldn’t comment on these kinds of article, yet I wanted to tell you I’ve put a backlink to your article on my own blog. I was considering that you can profit from my visitors since me and you have a fairly related web site. I would certainly appreciate a link back 😉 Look at your link available here fastfoodrecord.com. Regards, Hosea Stoesz
I feel like you could probably teach a class on how to make a great blog. This is fantastic! I have to say, what really got me was your design. You certainly know how to make your blog more than just a rant about an issue. Youve made it possible for people to connect. Good for you, because not that many people know what theyre doing.
Great read. I was e-mailed a link to this website by a classmate of mine who said I should check this site out because I’d like it. Well, he was right. Good job and keep up the great work. Cheers!
I am not sure the place you are getting your info, but great topic. I needs to spend a while finding out more or understanding more. Thank you for wonderful information I used to be looking for this info for my mission.
Great article, I’ve bookmarked this page and have a feeling I’ll be returning to it regularly.
This was a good read. Thanks for the post.
Thanks, a great read – added to favourites so will check back for new content and to read other people’s comments. Thanks again.
I truly appreciate this post. I’ve been looking all over for this! Thank goodness I found it on Bing. You have made my day! Thanks again!
Hello there, I found your web site via Google while searching for a related topic, your website came up, it looks good. I’ve bookmarked it in my google bookmarks.
I was just looking for this info for some time. After 6 hours of continuous Googleing, at last I got it inside your web-site. I wonder what’s the lack of Google strategy that do not rank this type of informative internet websites in leading of the list. Normally the leading sites are full of garbage.
Your site is so excellent … carry on the good work!
I have found your website on Google and the information written on your post is interesting. I enjoy reading this one, looking forward to reading more of your posts!!
I like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon.
Awesome job on this post.
Oh my goodness! an amazing article. Thank you!
It is always nice when you find a write-up that is not only informative but fun. I must bookmark Top Issues Facing Healthcare Leaders in 2011 – Einsight. I have been searching for ideas about this subject matter for years and yours is the best I have located. I really liked your posting.
Witty! I’m bookmarking you site for future use.
I was very pleased to find this website. I wanted to thank you for your time for this wonderful post!! I definitely enjoy reading it and I have you bookmarked to check out new stuff you blog post.
I was very pleased to find this website. I wanted to thank you for your time for this wonderful post!! I definitely enjoy reading it and I have you bookmarked to check out new stuff you blog post.
Oh my goodness! an amazing article. Thank you!
You should take part in a contest for one of the best blogs on the web. I will recommend this site!
This was a really nice post.
I’m impressed, I must say.
This is the best web blog I have read.
Awesome job on this post.
Fantastic blog you have got here. You will see me looking at your stuff often. Book marked!
I am often blogging and i really appreciate your content. The article has really peaked my interest. I am going to bookmark your site and keep checking for new information.
Thank you for your thoughtful post!
While I can appreciate the points in Top Issues Facing Healthcare Leaders in 2011 – Einsight, I am tired and sick of hearing about the “economic recovery”. The US government borrowed and spent $6.1 trillion during the last four years to generate a cumulative $700B increase in the nation’s Gross domestic product. That means we’ve borrowed and spent $8.70 for every $1 of nominal “economic growth” in GDP. In constant dollars, GDP is flat, we got no “growth” at all for the $6.1T. In constant dollars, the gross domestic product in 2011 might go back to the 2007 level, if the economy continues “growing” at the same pace reached inside the first three months of 2011. If not, then the GDP will in reality be below pre-recession levels. There is no economic recovery, the facts prove it.
I saw this really great post today.
Great blog! I really love how it’s easy on my eyes as well as the information are well written. I am wondering how I could be notified whenever a new post has been made. I have subscribed to your rss feed which ought to do the trick! Have a nice day!
Greetings from Idaho! I’m bored to death at work so I decided to browse your blog on my iphone during lunch break. I love the knowledge you present here and can’t wait to take a look when I get home. I’m amazed at how quick your blog loaded on my cell phone .. I’m not even using WIFI, just 3G .. Anyways, awesome blog!
I don’t suppose I’ve never read something like this before. So nice to find somebody with some original thoughts on this subject. I really thank you for beginning it. This web site is one thing that is wanted on the net, someone with just a little originality.
I was very pleased to find this website. I wanted to thank you for your time for this wonderful post!! I definitely enjoy reading it and I have you bookmarked to check out new stuff you blog post.
I enjoy reading a post that will make people think. Also, thanks for allowing me to comment!
It’s hard to find knowledgeable people on this topic however you sound like you know what you’re talking about! Thanks
Oh my goodness! an amazing article. Thank you!
That is a great point to bring up. Thanks for the post.
It’s hard to find knowledgeable people on this topic, but you sound like you know what you’re talking about! Thanks
Excellent blog you have here. You will see me looking at your stuff often. Book marked!
This was a really nice post.
Good article , thanks and we want more! Added to FeedBurner as well
I wish to express appreciation to the writer for this wonderful post.
I really enjoy the blog post.Much thanks again. Awesome.
I really enjoy the blog post.Thanks Again. Awesome.
What a good post. Thanks and keep up the good posts.
Your material is amazingly appealing.
Particularly useful….looking forward to coming back.
I simply want to tell you that I am just new to blogging and site-building and definitely savored you’re website. More than likely I’m want to bookmark your blog . You really have amazing articles. Bless you for sharing your web page.
Very useful, thank you.