What’s Next
The U.S. healthcare sector is unique in that it’s comprised of healthcare payers and providers. They each face different pressures, which is driving different levels of adoption of outsourcing.
Payers are facing intense cost pressure as Medicare reimbursement amounts have been slashed, driving many of them to look for savings. At the same time, payers tend to be earlier adopters of outsourcing than providers, so they are often in their second- or third-generation outsourcing agreements. This is driving them to look for consolidation opportunities – and of course – ways AI can increase productivity and decrease costs.
Healthcare providers are also
facing significant cost pressure and struggling with technical debt at the same time, especially in areas like revenue cycle management and electronic health records. In addition, providers are struggling to attract and retain technology talent, which is in turn leading to a greater risk of cybersecurity breaches. This risk is driving both regional and large healthcare providers to look at the IT and business services sector as a source of strategic funding in exchange for a multi-year commitment.
These converging forces – cost pressure, lack of skills, increased regulation, AI-based innovation – are only going to accelerate over the coming years. As will the need for healthcare in the U.S. as the population ages and lifespans increase. This means that, over the long run, demand for IT and business services in the healthcare sector will remain strong.
