PricewaterhouseCoopers Forecasts Top 10 Issues for the Health Care Industry in 2006
Brief:
PricewaterhouseCoopers released a report high lighting the Top Ten Issues the health care industry is facing.
- Medicare Drug Plan (also known as Medicare Part D) – will put negative pricing pressure on the pharmaceutical industry.
- Uninsured (over 45 million Americans) – Hospitals and other providers are seeing the “bad-debt” levels rise.
- The Rise of the Health Care Consumer – $10 co-pays are OUT, (plans are too expensive when you have to pay for your own insurance), High deductible health plans and HSA’s are IN. This causes the consumer to be more conscious of their medical spending.
- Wellness is IN, Fatness is OUT – consumers with poor health are paying more for their health insurance, if they can get it.
- Patient Safety – investments in IT will help reduce errors and improve tracking and reporting.
- Diminishing Drug Pipeline – pharmaceutical profit margins are slipping.
- Pay for Performance – increased emphasis on reimbursement being tied to performance.
- Report Card Fever – increasing demand for transparency in health care.
- Technology Backbone – Slow adoption of technology causes many issues in the health care industry.
- Labor Shortages – increases in automation, outsourcing, subsidized training, aggressive recruitment and retention.