American health The industry is in the midst of one of the biggest transformations an industry has seen since the dot-com boom of the late 1990s. This massive change is being spurred by federal mandates, technological innovation and technology. need to improve clinical outcomes and communication between providers, patients and payers.
An aging population, an increase in chronic diseases, lower reimbursement rates and a shift to value-based payments – along with the COVID-19 pandemic – have increased the pressure and highlighted the need for new technologies to improve virtual and value-based care.
Improving health outcomes now requires processing huge amounts of health data, and the cloud plays a central role in meeting the needs of today’s healthcare organizations.
Most of today’s healthcare challenges fall into two broad categories: rapidly rising costs and increased burden on resources. The increased costs – and the resulting inadequate health resources – can come from:
An aging population: As people age and live longer, health care becomes more expensive. As medicine improves, people 65 and older are expected to make up 20% of the U.S. population by 2030, according to the US Census Bureau. And as older people spend more on health care, the aging of the population is expected to increase health care costs over time.
Prevalence of chronic diseases: According to a report from the National Center for Biotechnology Information, treating chronic disease accounts for 85% of health care costs, and more than half of all Americans have chronic disease (diabetes, high blood pressure, depression, lower back and neck pain. , etc.)
Higher outpatient costs: The cost of outpatient care, including outpatient hospital services and emergency room care, increased the most of all treatment categories covered in a 2017 study in the Journal of the American Medical Association.
Increased health care premiums, reimbursable expenses, and Medicare and Medicaid: Health care premiums increased by about 54% between 2009 and 2019. The COVID-19 pandemic has boosted enrollment in government programs such as Medicaid and Medicare, which has increased the overall demand for medical services, contributing to rising costs. A 2021 IRS report pointed out that a move to high-deductible health plans – with fees of up to $ 14,000 per family – also increased the cost of health care.
Care and surgeries delayed due to COVID-19: A survey by the Kaiser Family Foundation (KFF) in May 2020 indicated that up to 48% of people have avoided or postponed medical care due to concerns about the COVID-19 pandemic. About 11% of these people said their condition worsened after skipping or postponing treatment. Elective surgeries have been frequently postponed as resources have been set aside for COVID-19 patients. These delays make treatable conditions more expensive and increase overall costs.
A lack of pricing transparency: Without transparency, it is difficult to know the true cost of health care. The fragmented data landscape fails to capture complete details and complex medical bills, and does not give patients a full view of payments.
Digital transformation across the system can help healthcare organizations connect and aggregate data from disparate sources to support a layer of healthcare intelligence.
The need to modernize
To mitigate the impact of rising costs and inadequate resources, healthcare facilities need to replace legacy computer programs and embrace modern systems designed to support rapid innovation for collaborative, site-independent care, while being affordable and accessible.