PricewaterhouseCoopers believes 2019 is the year a New Health Economy comes of age, according to its 13th annual report, "Top health industry issues of 2019." View the top six takeaways from the report in this slideshow.
PricewaterhouseCoopers believes 2019 is the year a New Health Economy comes of age, according to its 13th annual report, "Top health industry issues of 2019." The company predicts new products, investments and consumer trends will impact healthcare in six key areas.
DIGITAL THERAPUETICS: 2019 will see new connected health devices and digital therapies available to integrate into care delivery and the regulatory process for drug and device approvals. Physicians may have to incorporate new streams of data into workflow processes. (©MaschaTace/Shutterstock.com)
TAX REFORM: The 2017 Tax Cuts and Jobs Act in 2019 will begin to affect the healthcare industry through both new tax savings possibilities and new tax challenges. According to a PwC Health Research Institute and PwC National Tax Practice analysis, the major negative impact to providers will be felt in increased deductions for individuals and may decrease charitable contributions to non-profits; Unrelated Business Taxable Income changes may result in new expenses for non-profits and payers; net investment excise tax on educational foundations may affect academic centers; and a new 21% excise tax imposed on tax-exempt employers that pay “excess” compensation to “covered employees,” over $1 million. (santima.studio - stock.adobe.com)
"VALUE LINE" PRODUCTS & SERVICES: As the healthcare industry is pressured to do more with less, some healthcare companies are starting to build lower-cost delivery models to capture consumer patients who are struggling with new higher-deductible health plans or no insurance. (Neyro - stock.adobe.com)
PRIVATE EQUITY: Acquisitions in the healthcare market have become increasingly diversified and frequent, and this trend is expected to accelerate. The number of deals involving private equity buyers or sellers has steadily increased from 229 in 2009 to a projected 747 deals in 2019. In 2017, there was a total of $1.35 trillion in assets under private equity management. (zenzen - stock.adobe.com)
AI & AUTOMATION: As technology advances, organizations will find they need to invest in and train their employees to succeed. While technology can help companies reduce transactional tasks, of those surveyed, 45% of provider executives say their workforce’s capabilities are a barrier to organizational change. Training in robotic process automation and artificial intelligence can keep healthcare professionals practicing at the top of their licenses and abilities. (Mykola - stock.adobe.com)
AFFORDABLE CARE ACT: Changes to the law by Republicans will shift who wins and loses. Healthy individuals wishing to purchase and payers buying or selling shortterm limited duration insurance may benefit, while middle-class consumers seeking comprehensive coverage, and provider and payers dependent on patients covered by Medicaid or ACA plans living in conservative-leaning states may be challenged. (bakhtiarzein - stock.adobe.com)