The health care industry is poised for significant changes in 2025, driven by various trends and challenges. According to a recent survey by Deloitte, nearly 60% of industry leaders hold a favorable outlook for the year ahead, a notable increase from 52% just a year ago[1]. This surge in confidence is underscored by the 69% of US health care respondents who anticipate a rise in revenue in 2025 and the 71% who expect improved profitability.
Key trends expected to impact the industry include demographics, proposed Medicare changes, staffing constraints, AI innovations, and deregulation[3]. The aging US population and new treatment innovations are seen as driving forces for industry growth. However, proposed changes to Medicare and staffing shortages, exacerbated by limits on immigration, could constrain the supply of health care services.
Health care executives are prioritizing growth strategies, with 65% identifying developing growth strategies to increase revenue as a top priority for 2025[1]. Health plans are primarily focused on adopting transformative technologies, including gen AI, while health systems are more focused on strengthening their core legacy business technologies.
Regulatory uncertainty remains a concern, with 44% of surveyed health care executives indicating that it could influence their strategies in 2025[1]. The incoming administration and the 119th Congress will likely have several priorities and issues to address, including laws and programs that could significantly affect health plans, health systems, and health care consumers.
Workforce challenges, such as talent shortages, the need for upskilling, and retention issues, are expected to influence organizational strategies in 2025, particularly for health systems[1]. To address these challenges, health system leaders should look for opportunities to rebuild trust and restore a sense of meaning, value, and purpose in their employees' jobs.
The industry is also expected to see significant advancements in AI technology, with AI-powered diagnostic tools gaining wider adoption in clinical settings and contributing to improved diagnostic accuracy and more personalized patient care[3]. Additionally, care is shifting to telehealth, home care, and ambulatory care, making it more accessible and focused on patients.
PwC is projecting an 8% year-on-year medical cost trend in 2025 for the Group market and 7.5% for the Individual market, driven by inflationary pressure, prescription drug spending, and behavioral health utilization[5]. This near-record trend reflects higher than expected utilization of certain drugs and higher acuity inpatient and outpatient utilization.
In conclusion, the health care industry is at a crossroads, with various trends and challenges shaping its future. Industry leaders are cautiously optimistic about 2025, prioritizing growth strategies and navigating regulatory uncertainty, workforce challenges, and technological advancements. The industry's ability to balance growth with affordability and accessibility will be crucial in the coming year.
