COVID: Rewriting History
Anticipated Changes
While the pandemic exposed gaping holes in our social network and healthcare system, it also highlighted areas of unprecedented collaboration between entities—both governmental and private, around flexibility, including innovation and surprising cooperation.
“The efficiencies and expansion of care, as well as the potential to reduce medicine's carbon footprint, point to permanent changes and opportunities," says Ricky Goldwasser, equity analyst covering health-care services and technology, “As the opportunities unfold, we expect to see increased venture and private equity funds flow into health-care services and digital health tech, translating to increased initial-public-offering activity over the midterm and, potentially, a more modernized health-care system.”
Four specific areas COVID-19 is changing the healthcare industry include:
Governmental deficits that are worsening due to COVID
Healthcare is considered a right, not a privilege, for the un- and under-insured. This concept has gained momentum with voters when healthcare has become a major ballot issue.
The world has moved even further into the virtual world than ever before with no anticipated end.
Perhaps most glaringly, providers (and payers) who function at a fee-for-service level are being hit hard during the pandemic, whereas those operating at full or partial financial risk will be impacted less; highlighting the fragility of the fee-for-service model. Momentum and political pressures are growing in support of a full or partial risk model, including single-payer.
As the U.S. returns to a more normalized environment, experts predict higher commercial and Medicaid/Medicare insurance enrollment; greater managed-care presence; and Centers for Medicare/Medicaid policy updates to help meet the urgent need for uninsured Americans needing access to health coverage due to the unprecedented number of unemployed individuals. Currently, public companies with the largest Medicaid/exchange market share are best poised to survive in the post-COVID environment.
Resolutions
It is unlikely that we will revert to pre-COVID norms. With the increase of individuals losing insurance benefits due to COVID job loss, a growing funding challenge remains for larger, government-funded programs. Additional cost factors may include lowering the Medicare eligibility age to 60, expanding the Affordable Care Act to include a Public Option, and reducing Medicaid participation requirements.
Healthcare regulations will likely continue to reflect the changes and disruptions to traditional models of care brought about by COVID responses such as increases in telehealth options.
Data and resource sharing will continue to spread across platforms and facilities. Wearables and home monitoring will add to the integration of data for individuals. Over time, the home will increasingly become the center of care through increased use of telemedicine and technological advancements. Artificial intelligence, point-of-care diagnostics, and wearable biometric monitoring will expedite the decentralization of care.
Point of care diagnostics technologies will allow medical providers to have instant confirmation of patient diagnoses in decentralized settings, reducing costs and accelerating access to appropriate treatment. Wearable biometric monitoring devices, like the Apple watch, will allow patients and providers to remotely monitor medical status, allowing for safe care at home.
A Leader’s Response
Leaders must move from a reactive mode to a stance that works towards proactive measures. Engage your team to anticipate how new trends may fail or create new opportunities. Be mindful of potential developments and how they may impact previous policies and procedures. Create contingency plans and adjust when and wherever needed. Acknowledge that history has taught us how to behave and the COVID experience has rewritten history.
The challenge ahead calls leaders to navigate uncertainty while restructuring care in an abruptly transformed health system.