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Northeast: In 2016, healthcare spending reached USD 645.7 bn and is forecast to increase to USD 871.2 bn by 2022. In 2016, New York was the highest spending state, while Vermont was the lowest spending.
Midwest: In 2016, healthcare spending reached a value of USD 652.1 bn, which is forecast to increase to USD 434.9 bn by 2022. In 2016, Illinois was the highest spending state, while North Dakota was the lowest spending state.
South: In 2016, healthcare spending reached a value of USD 1,078 bn, which is forecast to increase to USD 1,493.5 bn by 2022. In 2016, Texas was the highest spending state, while Washington DC was the lowest spending.
West: In 2016, healthcare spending reached a value of USD 705.5bn, and is forecast to increase to USD 1,068 bn by 2022. In 2016, California was the highest spending state, while Wyoming was the lowest spending state.
F. Randy Vogenberg from the National Institute of Collaborative Healthcare has identified eight key trends that will affect the US healthcare marketplace in 2018/2019:
1. Rural healthcare With government programmes in constant danger of spending cuts, rural healthcare providers are in crisis. Rural healthcare providers and hospitals will continue to turn to leverage new technology such as such as telehealth and telemedicine, and consumer health wearables or smartphones as ways to survive and grow in an evolving market.
2. Consumerism in healthcare As costs for consumers continue to rise, consumers become more engaged in making certain they are getting the best value for their money. The success of healthcare providers will depend on their ability to meet consumers' needs and expectations.
3. Workforce change Employment in the US is undergoing intense changes, and the most difficult aspect of managing a workplace comprising different generations of employees remains communication. Many companies experience a large technology gap in corporate communications the physical workplace is also changing for employers.
As a way of improving overall communications with employees, employers will continue to expand their benefits and voluntary benefits to include critical illness coverage, fitness centers, onsite or near-site health clinics, etc.
4. Administration Transformation: Benefits strategy and speciality drugs Intensified scrutiny of benefits administration, benefits strategy, and drug pricing is already occurring. Pharmaceutical pricing in the supply chain, especially for speciality drugs, has taken centre stage as a main driver of increasing healthcare costs. There will continue to be a concerted effort by all stakeholders to share the higher costs while increasing the use of industry-wide cost-sharing initiatives.
5. Integrated care for population health Innovations play a key role in the advancement of healthcare delivery, and as the use of technology continues to increase, ambulatory and outpatient care will also increase, supported by consumers who will find the growth of these services saves them money on their healthcare costs. Integral to achieving savings will be integrated models to deliver successful population health outcomes from the services provided.
6. Technology Acceleration and transformative market impacts Technologic advances will continue to have a large impact on the delivery of healthcare and will affect all stakeholders in some way. The depth and breadth of the current technology applications on the market will quickly be surpassed by a robust pipeline of new offerings that surpass older ones in functionality and market transformation.
7. Supply chain (drug and revenue) disruption Without federal action to change the healthcare market dynamic or to empower states, the marketplace will be further fragmented by public or private sector lines being drawn. Private sector healthcare can innovate and grow with the markets' desire to offer benefits to employees.
8. Legislative and/or regulatory change Government agencies are beginning to make a difference and create change within their areas of regulatory authority. Without federal action to change the healthcare market dynamic or to empower states, the marketplace will be further fragmented by public or private sector lines being drawn.
1. Brazil is expected to bounce back from meagre economic growth of 0.7% in 2017 with a surge in medical equipment and device sales. One major reason for this projection is due to increasing import levels.
2. Mexico is set to make its mark. Like Brazil, Mexico has experienced volatility in recent years when it comes to both overall economic and healthcare sector growth. However, in October 2017 the IMF forecasted GDP growth to be 1.9% for Mexico in 2018.
3. Smaller markets are set to surge. The big players of Brazil and Mexico aren’t the only countries that GHI expected good fortune from in 2018. Smaller markets like Chile, Peru, Guatemala and Costa Rica should become increasingly important players in the medical equipment markets, as well.
4. One of the major trends that GHI projected for 2018 and beyond is a growing customer base for private medical services. Latin America’s health insurance companies have the most rapid level of growth in the world, with 30% growth, each year, projected through 2025, as per McKinsey and Company.
5. With healthcare budgets remaining tight in Latin America in 2018 and beyond, hospitals will continue to be attracted to lower-priced alternatives.
(Source: Global Health Intelligence (GHI)