Health care providers must understand the risks of added reliance on technology.
Key takeaways
Fundraising and deal-making challenges remain, but headwinds will ease with interest rate cuts.
Health care organizations should focus on operational resilience when making technology enhancements.
Health care trend #1: Deal making
Private investors are eager to invest in health care, with deal volume nearly returning to prepandemic averages. The expected start of the interest rate cut cycle will spur meaningful deal activity, despite longer due diligence cycles and a general market complaint about a lack of quality assets. Health care dry powder remains high, signifying investor optimism for the sector. Fundraising and deal-making challenges remain, but headwinds will ease with interest rate cuts, making capital less expensive and more deals attractive.
Deal flow to increase with clarity on Fed policy and valuation convergence
Private markets are primed for health care investment in the coming months.
Health care trend #2: Technology and resilience
Technology infusion will heal health care productivity, but risks linger
Health care’s digital transformation promises to boost productivity, but it also exposes organizations to new risks that demand a robust resilience strategy.
Technology, particularly artificial intelligence (AI), is transforming the health care industry by enhancing operational resilience and productivity. Health care organizations are increasingly investing in AI to streamline operations and reduce administrative burdens, such as high claim denial rates. However, these technological advancements also introduce new challenges, including cybersecurity risks and the need for robust disaster preparedness. This article emphasizes the importance of focusing on cybersecurity, workforce adaptability, and environmental, social, and governance (ESG) strategies to ensure long-term sustainability and improved patient outcomes.
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