Explore the top issues facing global health care organizations and stakeholders as they seek to address the most challenging issues in 2017

1. 2017 global health care
sector outlook
Deloitte's yearly look at the topics, trends, and issues impacting the global health care sector
Global health care spend projected to reach
$8.7 trillion by 2020
Where is the growth expected?
Emerging and lower-income countries will drive the rise in health care
expenditures through 2020 as well as the expansion of services in
developed countries.
4.3%
2.4%
North America
4%
Western Europe
5%
Asia &
Australasia
4.2%
Middle East and Africa
7.5%
Transition Economies
Latin America
Top issues and trends
Cost
Care delivery
Innovation
Operations
Regulatory compliance
Cost
Health care spending in the world's major
regions increases from 2.4 percent to
7.5 percent between 2015 and 2020
Health care expenditures as a percentage of
GDP are projected to rise more quickly in
low-income countries due to limited government
reimbursements for respiratory conditions
Cardiovascular disease costs
continue to rise for lower and
middle-income countries
Clinical pathways
Standardized clinical processes
Technology-assisted services
Shared services centers
Lower-cost and
non-traditional settings
Strategic procurement
Increased use of generic
drugs and biosimilars
Achieve economies of scale
Cost containment measures
Innovation
Operations
Care delivery
Lack of access to basic health care
services and variations in care quality
Intermittent or chronic funding shortfalls
combined with other market drivers
Technology-enabled, virtual care to help bridge
the care delivery gap
Addressing social determinants of health and wellness
are anticipated to have an increasing impact on the
care equation
Lack of clinicians-especially general practitioners
and specialists
The number of hospital beds are declining spurred by regional economic slumps,
decreased government spending on health care, hospital closings and consolidations,
and pricing pressures
Regional comparison of number of beds
(per 1,000 of population)
(0.7%)
CAGR
0.3%
(0.7%)
(0.3%)
(04%)
2020 2010
Next-generation sequencing (NGS)
3D-printed devices
Immunotherapy
Artificial intelligence (AI)
Point-of-care (POC) diagnostics
Virtual reality (VR)
Biosensors and trackers
Convenient care
Telehealth
Leveraging social media to
improve patient experience
Top 10 innovations to
achieve more for less
in health care
Top 10 innovations to
achieve more for less
in health care
According to the Deloitte 2016 Survey of
U.S. Health Care Consumers, respondents’
interest in and use of technologies for
health and fitness purposes are growing:
58 percent of prescription drug users report
refilling prescriptions using a mobile health
application.
40 percent of surveyed caregivers would likely
use sensors for location tracking and fall
detection.
Consumer interest in using telemedicine ranges
from 32 percent for a minor injury to 49
percent for post-surgical care.
Consumers also express interest in using
robotics and drones for future health care
scenarios, such as medication assistance for
chronic disease (40 percent); disease diagnosis
assistance (40 percent); delivering laboratory
samples (38 percent); home maintenance
(caregiver) (35 percent); and disease diagnosis
replacement (32 percent).
safe, standardized, and
evidence-based processes
a competent, well-trained
workforce
effective use of innovative
technologies
Key ingredients for
productive health
care operations
Regulatory compliance
Health care stakeholder’s
consideration
Taking a standardized,
consistent approach to compliance
planning, execution and monitoring
Cost containment
to achieve operational
efficiency
Multi-pronged,
collaborative and
technology enabled approach
Breaking through
constraints of traditional
care delivery model
Cyber security as
main focus area
Digital health care
and analytics
Health care stakeholders
More sophisticated
risk-monitoring
techniques
Clinical quality
and safety
Cyber
security
Counterfeit
drugs
Corruption
Regulatory focus areas for 2017
Potential enablers of patient activation
and engagement
The continuing trend of “bigger is better” is apparent in the number of U.S.
announced hospital mergers and acquisitions going back as far as 1998.
An organizational culture
Workforce training
Employee skills in using interactive technology
automatic information delivery methods
Peer support, self-management education, health
coaching, and group activities
Formal channels
Processes to chart progress on patient engagement
Investments in the right technology
350
135
98 99 00 01 02 03 04
(1) (2) (3)
05 06 07 08 09 10 11 12 13 14
287
175
110
132
118
101
58 56 59 51 57 58
149
60
78
52
80 72
90
158
107
244
296
88
100
178
125
236
Number of Deals
249
88
38
300
250
200
150
100
50
0
86 83
Number of Hospitals
Health care growth rates through 2020
Global health care drivers
Health care spending trends
Issues & solutions that are impacting care delivery
In 2017, organizations of all sizes will need to continue navigating and complying with a highly complex,
changing set of global, regional, country, and industry-specific laws and directives
Health systems will likely need to implement new business and clinical operating models to deliver
scalable, efficient, and high-quality care, and to reduce waste, redundancies, and costs that threaten
system sustainability
In 2004, the privatization of Select Medical Corp., an operator of long-term and acute-care hospitals, and divestiture of hospitals by Tenet Healthcare
Corporation helped to increase the number of hospitals affected.
In 2006, the privatization of Hospital Corporation of America, Inc. affected 176 acute-care hospitals. The acquisition was the largest health care
transaction ever announced.
In 2013, consolidation of several investor-owned systems resulted in large number of hospitals involved in acquisition activity.
(1)
(2)
(3)
Advancing health care sector innovation is a clinical and cost imperative
vertical and horizontal consolidation
patient engagement
...are indicative of health systems' increasing focus
Three sector trends
market disruptors
7.70
8.29
4.81
5.14
2.81
2.91
2.01
2.09
2.12
2.05
Economies in
Transition
Western
Europe
North America
Latin America
Asia and
Australasia
To learn more about the trends, challenges, and issues impacting the global health care sector,
please visit www.deloitte.com/healthcareoutlook for more information.
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© 2017. For information, contact Deloitte Touche Tohmatsu Limited.
% of GDP spent on health care should also rise slightly,
from an estimated 10.4 % in 2015 to 10.5 % in 2020
Number of diabetes sufferers is expected
to rise from the current 415 million to
642 million by 2040.
By 2020, 50 percent of global health care
expenditures – about $4 trillion – will be
spent on three leading causes of death:
cardiovascular diseases, cancer and
respiratory diseases.
Prevalence of dementia is forecast to
increase in every region of the world and
is anticipated to double every 20 years,
reaching 74.7 million by 2030.
HIV-AIDS continues to affect 36.9 million
people worldwide, around 70 percent of
them living in Sub-Sahara Africa. The Zika
virus and associated upsurge in microcephaly
are major threats in Latin America.
Aging population (> 65 yrs old) will increase
by eight percent, from 559 million in
2015 to 604 million in 2020.