By Salvatore Barbera, DHA, MSM, FACHE
Over time, our healthcare system has worked through numerous challenges and survived in a stronger position. The post-pandemic environment is still another challenge we face that could change the course of the industry creating new opportunities. The external global environment suggests a global recession along with a shrinking of the world’s gross domestic product. Inflation is a reality that cannot be ignored and will test the strength of many healthcare organizations. Historically, healthcare is recession proof but because of the pandemic, the healthcare sector must address both inflation and a potential recession. In a recession, healthcare consumers tend to delay elective medical interventions. These elective procedures are economically essential for many providers. Though healthcare will fair comparatively well during a recession, it must focus on financial performance which could influence the resource allocation process within these healthcare organizations. A significant challenge will be dealing with existing labor issues facing the industry that could cause a continued increase in labor costs and impact overall financial performance. Such labor cost increases could also negatively impact administrative expenses and reduce earnings.
The pandemic created many opportunities for healthcare organizations that should result in newly defined revenue streams through behavior changes within healthcare consumers. Many healthcare consumers used their community hospital for all healthcare needs and trusted them to look out for their best interests. These consumers would rely on their community hospital for ongoing education, wellness visits, routine laboratory, and imaging services, etc. However, in a post-pandemic environment, many of these same healthcare consumers have been successfully introduced to numerous healthcare related services that can be received in an outpatient clinic, laboratory, imaging center, and even their home. Prior to the pandemic, many healthcare consumers would not consider the use of telehealth technology. Now many embrace and prefer the technology and the safety and comfort of their home for the delivery of care and services. In fact, in our current post-pandemic environment who does not provide telehealth services? Studying the history of telehealth technology is revealing and should be considered when looking at various opportunities for growth. This technology has been around much longer than we realize and serves as an example of the course of action expected with similar new advances in healthcare. The pandemic provided an opportunity to promote telehealth as a potential service for healthcare consumers, all from within their homes. This option became attractive for healthcare providers as well. In addition to the boost provided by the pandemic in creating significant growth opportunities for telehealth, the availability and improvement in reimbursement was a formidable contributor to the subsequent use and availability of telehealth technology. The industry is following this trend and providing support for its continued advancement such as allowing a physician to provide a telehealth consult to a patient across state lines and within any geographic setting. Once again, primary care is receiving attention focusing on preventive care. This industry trend is growing due to consumer interest in convenience and unobstructed access to basic primary care needs. This trend is and will continue to provide opportunities within the industry as seen with the uptick in activity within the non-traditional players in healthcare such as Walmart, CVS, and Amazon. These new entrants will disrupt the primary care sector providing access enhancement for all healthcare stakeholders whether being a provider or receiver of care. There is not a better time to be in healthcare! Even though this rapidly growing activity suggests industry unrest and turmoil, opportunities will follow for both those receiving healthcare services and those seeking employment career paths.
Dr. Salvatore Barbera, Associate Program Director, Health Administration Programs, College of Business, Florida Atlantic University, can be reached at (561) 297-4444 or Sbarber2@fau.edu.
