10,000
Baby Boomers will reach age 65 daily
between 2011 and 2030, the Pew Research Center predicts.
How technology, aging populations and a global pandemic are reshaping healthcare
Featured expert
Michele Holcomb
Executive Vice President, Strategy and Corporate Development
Editor’s note: The following interview was originally posted on Becker’s Hospital Review site.
As America ages, increased demand for healthcare and rising costs have put pressure on the entire healthcare system. This pressure is causing shifts in healthcare delivery, such as value-based care, the rise of non-acute care settings, and more.
Becker's Hospital Review recently spoke with Michele Holcomb, executive vice president of strategy and corporate development at Cardinal Health. Our discussion happened before the COVID-19 pandemic, but a follow up discussion took place to see how the current situation is affecting the healthcare trends initially discussed.
Demographics, technology and COVID-19 reshape healthcare
The United States Census Bureau estimates that there are 73 million baby boomers – and the Pew Research Center predicts that between 2011 and 2030, 10,000 Boomers will reach age 65 daily. This effects healthcare delivery in two ways. First, as people age, they require more healthcare. “In most industries, when demand increases, that's a good thing. In healthcare, however, it's challenging because as costs go up, they eventually reach a ceiling of society's ability to pay," Holcomb said. “This is creating reimbursement pressure at nearly every interface in healthcare." COVID-19 has exacerbated these challenges because those over 65 are more likely to experience severe illness due to the new coronavirus.
The need for better, more precise healthcare that is still cost-effective has been one of the driving forces behind the development of healthcare technology. The ability to process massive amounts of clinical and genetic data has enhanced understanding of disease. This has helped the pharmaceutical industry to develop new cell and gene therapies or “precision medicine". EvaluatePharma predicts that this sector will experience up to a 70% compound annual growth rate; it will represent around $3 billion this year and could reach upwards of $20 billion by 2024.
Overall, these trends will change virtually everything about healthcare delivery – and COVID-19 will cause these trends to advance more quickly.
Cost, consumer convenience creating a shift towards non-acute care
Non-acute care is another important trend in modern healthcare. It costs less and is often more convenient for the patient to be treated in ambulatory surgery centers, clinics, outpatient settings, and even at home. Most health systems now offer both non-acute care sites and traditional hospitals. According to the L.E.K. Hospital Study, the percentage of health systems with non-acute care sites rose from around 50% in 2017 to around 75% today. Mobile devices support this trend by making home-based services more feasible. The COVID-19 pandemic has created impetus towards care that can take place at a safe distance and has, unsurprisingly, caused telemedicine use to rise dramatically.
“Technology is enabling access to healthcare in many ways," Holcomb said. “You no longer need to live in certain places to get access to great care, and you no longer have to go to your physician in person, for many aspects of a visit – this is helping people to get care, even as they stay at home." In reference to Cardinal Health's At Home Solutions, Holcomb adds that, "Cardinal Health has a business that supports patients in the home, but we are also evolving, so that people can receive the full range of care and products in the home setting."
Data supports healthcare efficacy and safety
Companies like Cardinal Health use data to respond to emerging trends and to provide high-quality, cost-effective services to consumers and health systems alike. Data is important across multiple healthcare settings: it is critical for transportation, as well as for tracking and ensuring the safety and security of the global healthcare supply chain. The criticality of data and its linkages to supply and logistics, is magnified during the current pandemic with the increased need for many supplies. During the COVID-19 outbreak, for instance, distributors have had the increasingly vital job of assuring the safety and security of the supply chain and verifying that the products are not counterfeit.
“Data is the key to ensuring that the right devices and products are used on the right patients. Cardinal Health's WaveMark solution, for example, helps hospital cath labs track and properly use the supplies used in patient treatments," explained Holcomb. “WaveMark uses RFID-enabled cabinets to store and track products and a web-based solution provides real-time visibility into inventory levels as well as tracking of expiration dates of these products."
Consumer healthcare depends on transparency, access and affordability
Consumer healthcare is about meeting the patient expectation of safe, affordable, state-of-the-art care. Physicians, health systems, manufacturers, payers and companies like Cardinal Health are all thinking about how to provide consumers the care they want in the setting they prefer. The desire to provide for consumers has reached a new level of need because of the battle against COVID-19.
“Cardinal Health sits in the middle of the healthcare system and we see how trends are playing out in hospitals, pharmacies, clinicians' offices, payers, and directly with patients" Holcomb said. “We're excited about the future and are striving to provide customers with new business models. Our goal is to help customers address the challenges associated with the changing world of healthcare delivery. And this begins now with helping our customers and their patients battle this virus."
