The outlook for healthcare in 2025 is rosy, healthcare execs say

Most expect to see revenue rise, while also embracing technologies like generative AI

2024 saw a continuation of most of the challenges that the healthcare industry has been facing for years, including healthcare professional shortages, with the Association of American Medical Colleges projecting a shortage of up to 24,000 physicians by 2034; an increasing number of healthcare cyber-attacks; and rising costs.

Yet, healthcare executives are feeling pretty confident that 2025 is going to be a good year, according to a survey from Deloitte's Center for Health Solutions earlier this month. 

The survey, which took responses from 80 C-suite executives from large health systems and health plans with revenue greater than $500 million, found that nearly 60% of them have a favorable industry outlook for the year ahead, up from 52% a year ago. That's likely due to 69% believing there will be a rise in revenue in 2025 and 71% expecting improved profitability.

"Over the past two years, many US health care organizations have faced margin pressure, workforce shortages, and an industrywide push to adopt digital technologies. After several years of stabilizing their businesses, 2025 could mark a turnaround period for the health care sector, driven by innovation, resilience, and strategic growth," Deloitte wrote in the report. 

Among the top trends for the coming year include developing growth strategies to increase revenue, which 65% said is having a "significant impact" or would be "very important." Additionally, 55% said the same for prioritizing cybersecurity enhancements, and 53% cited improving cost efficiencies and productivity. 

To attract new consumers and drive organic growth, half of health plan executives, and 55% of health system executives, said they need to improve consumer engagement, trust, and the overall consumer experience.

Among the strategies they plan to implement to do this include the development of new health and wellness-focused products, which 21% of respondents said will be a priority for them in the upcoming year.

"Healthcare organizations might explore how other industries like retail or hospitality have successfully driven growth and cultivated consumer loyalty. Some of their consumer-centric growth strategies could be adopted by the US health care sector, including more thoughtful use of digital tools and technology platforms to enhance consumer experiences," it says in the report.

Meanwhile, health plans are preparing for impending regulatory actions thanks to the incoming Trump administration, while also embracing new technologies, most specifically generative AI, with 60% of health plan respondents anticipating the adoption of digital technology to accelerate in 2025.

Meanwhile, 53% expect that gen AI and other technologies, such unlimited reality and digital twins, will impact their organizational strategies. On top of that, when asked to list the emerging trends they are tracking, 58% identified AI and automation.

When it comes to regulatory changes, nearly 60% of health plan respondents expect that recent and upcoming regulatory changes will influence their organizational strategies in 2025. Potential issues include adjustments to Medicare Advantage payment rates, Medicare drug-price negotiations under the Inflation Reduction Act, price-transparency regulations, stricter rules regarding mental health parity, and the 2025 Notice of Benefit and Payment Parameters.