Trending Challenges Facing the Health Care Industry

The health care sector is facing numerous trends that are reshaping its landscape. From workforce challenges driven by shifting demographics and skill demands to ever-evolving technological advancements, organizations must adapt and manage risks. Additionally, the threat of workplace violence and nontraditional mergers and acquisitions (M&A) further complicate matters, demanding attention and customized risk management strategies.

Health Care Industry Staffing Crisis

According to Deloitte, 57% of health system executives expect labor shortages to impact their 2024 strategy. This may lead to heightened employee injury rates and workers’ compensation risks from extended shifts and job responsibilities, raising the risk of overexertion or repetitive motion injuries. Labor shortages can also raise professional liability risks. Tired employees are more likely to make errors, leading to misdiagnoses or treatment, which can then result in lawsuits.

Looking for more insight into the property and casualty market? Our 2024 P&C Market Outlook offers an inside look.

Health Care Industry Technological Advancements

Telemedicine

Telemedicine has grown significantly as it offers benefits to both patients and health care organizations. Patients can receive timely and easy access to treatment, while your organization can expand its reach, boost operational efficiencies, address rising expenses, expand diagnoses and screenings, and enhance chronic disease management.

Artificial Intelligence

According to Grand View Research, AI in the health care market reached an estimated value of $22.5 billion in 2023. Your health care organization can use this technology to customize patients’ treatment plans and streamline tasks through data analysis, detecting potential patterns and uncovering opportunities for improved health outcomes quickly.

Wearable Technology

These devices can oversee patients’ vital signs (e.g., heart rate, body temperature, blood pressure), track their activity levels and manage chronic diseases. Utilizing wearable safety technology, medical professionals can monitor patients in various settings and empower them to take more responsibility for their health while reducing staff workloads and operational costs.

Health Care Industry Workplace Violence

Beyond the significant impacts on employees’ physical and
mental health, workplace violence incidents increase employer insurance costs,
financial liabilities and reputational damage.

According to the National Safety Council, the health care industry is more prone to violence. The U.S. Bureau of Labor Statistics reports health care workers are five times more likely to experience workplace violence than any other profession. A 2023 Premier survey reported 40% of health care workers experienced a workplace violence incident in the previous two years.

Health Care Industry Nontraditional Mergers & Acquisitions (M&A)

Nontraditional health care partners (e.g., private equity firms, retailers, technology), looking to expand into new markets and find innovative revenue streams, have emerged as major health care investors. These new shareholders are attractive partners as they look to expand services, improve staff-to-patient ratios and meet the client demands. Deloitte reported that 86% of health systems executives said M&A will impact their 2024 strategy.

According to the American Hospital Association, M&A can help reduce health care costs, drive quality and improve access to care. The emergence of nontraditional health care partners also introduces technology and security innovations and novel business models.

Investors looking to profit from acquisitions may lead to adverse outcomes such as reduced staffing, higher medical expenses and less equitable care availability. This focus on profits could overshadow patient’s medical needs.

How Your Health Care Organization Can Mitigate These Risks

Implementing these strategies will fortify your organization against emerging risks and position it for sustained success in a dynamic health care landscape.

Promote Staffing Excellence

• Offer competitive wages and benefits packages
  (e.g., tuition reimbursement options, flexible work arrangements, additional paid time off).
• Invest in employee assistance programs (EAPs) and staff well-being initiatives.
• Provide additional training and upskilling opportunities.
• Foster a positive and safe working culture.
• Utilize technology to enhance operational efficiencies and safety measures

Prevent Workplace Violence

• Establish violence prevention programs that include policies, procedures and training.
• Equip staff with the skills to recognize and respond to signs of potential violence.
• Enhance security measures with access control, surveillance systems, panic buttons and security personnel.
• Foster a culture of safety where employees feel empowered to report safety concerns and incidents addressed promptly.
• Conduct risk assessments for potential safety hazards and vulnerabilities and take proactive measures to address them.

Mitigate M&A Risks

• Perform due diligence before entering an M&A
• Communicate with staff impacted by the transaction.
• Prepare IT systems and offer education on modern technology.
• Enact policies and procedures to ensure decisions aren’t influenced by profit.
• Ensure the M&A adheres to all applicable regulations.

We’re Here to Help Protect Your Health Care Organization

As the health care landscape evolves, proactive risk management is essential. By staying informed, implementing tailored strategies and seeking expert guidance, health care organizations can navigate these challenges and safeguard their mission of delivering quality care. Connect with a member of our team to learn more about trends shaping your health care insurance coverage.