Labor challenges in health care will persist.
Health care industry outlook key takeaways
M&A activity in the health care industry remains stable.
The steady surge in the senior population has created booming demand for senior and home health care.
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Health care trend #1: Labor challenges
Labor challenges continue for health care, but AI could provide answers
Health care labor issues persist as organizations prepare for the end of 2023 and beyond. Generative AI may provide some relief.
Health care organizations are facing ongoing economic challenges, exacerbated by labor shortages. Enrollments in nursing and medical programs have dropped significantly, and a shortage of physicians is expected. To address these workforce issues, some organizations are turning to generative artificial intelligence and technology solutions. However, successful adoption requires careful evaluation, AI literacy, and a robust governance framework.
Health care trend #2: M&A activity
Despite lower deal volume in 2023 compared to previous years, mergers and acquisitions in the health care sector remain popular for investors seeking value amid high capital costs and tightening credit requirements.
Health care deal activity to remain steady amid elevated interest rates
Health care investors seek out value amid a higher interest rate climate.
Health care trend #3: Senior care and technology
Senior care looks to technology to address labor woes and patient engagement
The senior care sector continues to grapple with labor issues, elevated interest rates and inflation, which together have constrained growth.
The senior care labor force remains below pre-pandemic levels, despite the growing demand caused by an aging population. Home health care is expanding to meet this demand, offering flexibility and convenience, but caregiver burnout remains a concern. Technology, including generative artificial intelligence and remote patient monitoring, is becoming crucial for addressing workforce constraints and providing personalized care.
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