Healthcare Industry Analysis: December 1, 2025
The healthcare sector is experiencing significant momentum across multiple fronts as we enter the final month of 2025. Several major developments are reshaping the industry landscape.
The global healthcare supply chain business process outsourcing market is projected to grow from 3.05 billion dollars in 2024 to 4.83 billion dollars by 2034, reflecting a compound annual growth rate of 4.7 percent. This expansion is driven by healthcare institutions seeking to streamline operations and strengthen supply chain resilience. Procurement services are leading market growth due to the rising volume and complexity of medical products, while logistics and warehousing follow closely as automation and real-time tracking become essential. Major players including Cognizant, Genpact, IBM, Infosys, and TCS are heavily investing in digital platforms and AI-driven analytics to capture this growing demand.
On the construction front, healthcare building projects valued at 724.5 billion dollars are currently in various pipeline stages globally. North America dominates with 39.3 percent of the market share and 285 billion dollars in projects, with over 56.9 percent already in execution. This represents substantial capital commitment to healthcare infrastructure expansion.
Recent technological advancements underscore the industry's digital transformation. McKesson announced strategic partnerships to integrate artificial intelligence and analytics into supply chain workflows, while Cardinal Health strengthened its position through acquisition of a supply chain analytics company. IBM launched a blockchain-based healthcare traceability platform, and TCS unveiled a cloud-driven supply chain optimization suite.
On the regulatory front, the Centers for Medicare and Medicaid Services released its 2026 Home Health Prospective Payment System final rule. The Advanced Medical Technology Association expressed concerns about patient access to diabetes management supplies and ostomy products under new competitive bidding programs, emphasizing that continuous glucose monitoring devices paired with clinical care significantly improve patient outcomes and reduce healthcare costs.
Additionally, approximately 76 percent of hospital purchasing leaders view strong supplier relationships as critically important. About 70 percent of US hospitals are expected to adopt cloud-based supply chain tools by 2026, indicating accelerating digital adoption across the sector.
These developments demonstrate that the healthcare industry is prioritizing supply chain optimization, technological innovation, and patient access while navigating evolving regulatory requirements and geopolitical supply chain challenges.
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This content was created in partnership and with the help of Artificial Intelligence AI
