Macro Bites: Beating health care industry challenges

December 13, 2023

The US health care industry is facing a number of challenges, including higher costs and a labor shortage that has persisted since the COVID-19 pandemic. Job openings in the industry are about 15% higher than before the pandemic, while an aging population points toward long-term growth in the demand for care. At the same time, different players in the industry are reexamining what roles they should play in patient care. EY-Parthenon Chief Economist Gregory Daco and EY Americas Health Leader H. Mallory Caldwell discuss ways that health care leaders can leverage data and technology, as well as strategic partnerships and M&A to ease their labor burden and control their costs without sacrificing patient care.

Key takeaways

• Health care is a labor-intensive industry, with a turnover rate that is likely to worsen and a usage rate that is likely to grow as both care providers and patients age.
• The health care industry has reached its moment for tech innovation to support operational productivity while letting providers focus more on patient care.
• It’s time to rethink the traditional boundaries of who plays what role in the health care continuum.
• Partnerships and M&A are also strategic options for health care leaders to consider.
  

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