Reflections from 2022 and a look forward for the health care industry

REAL ECONOMY BLOG | November 21, 2022

Authored by RSM US LLP

As the calendar year comes to an end, it’s time for many organizations to reflect on challenges and issues from this year, as well as look to new efforts for the coming year. The following captures some key takeaways from 2022 and where health care leaders may want to focus on in 2023.

What did we learn?

  • Consolidations of large health systems are still very real and likely to continue to be an avenue for health systems looking to build scale and obtain market position as it relates to payor contracts.
  • Providers continue to be challenged with labor costs. Across the continuum of care in the U.S., labor is the most challenging issue in the industry. The only way providers will overcome this is through efficiency, likely through the use of technology.
  • Consumers are still not happy with their experience in health care; price transparency has yet to make the buying experience much better, and consumers are still seeing more and more risk shifted to them from their employers through high deductible plans.

For many health care organizations, next year will mean a greater focus on becoming larger, becoming more efficient and improving the patient-consumer experience.

Thoughts for next year

Key considerations for health care leaders next year will include:

  • Interest rate increases will cause health care providers to reconsider expansion of their capital spending. But it could also lead providers to double down on environmental, social and governance efforts and look toward green bonds or other capital that comes at a discount for ESG-related areas of focus.
  • Inflation will impact health care providers through the cost of everything they consume, from labor to supplies. It will also create stress on their revenue as consumers will be forced to decide what bills to pay, such as their health care deductible or their energy bills.
  • As health care becomes more consumer-driven, the age-old wisdom that health care is recession-resistant will be challenged.

Follow our health care thought leadership into 2023 by checking out our ongoing quarterly industry outlooks.

This article was written by Rick Kes and originally appeared on 2022-11-21.
2022 RSM US LLP. All rights reserved.

RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.

BST & Co. is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.

For more information on how BST & Co. can assist you, please call (325) 677-6251.