Capital Insights: Patients Are Fueling Healthcare Industry Consolidation and Change, Just Not for the Expected Reason
February 16, 2018 - By: SC&H Group
The healthcare industry is on the brink of change. There are numerous forces including providers and patients pushing this transformation to the surface. Few providers have the necessary funds and resources to navigate this industry transformation on their own.
Many Americans lack sufficient knowledge to successfully manage their own health, a dire reality that undermines the wellness of our population and fuels avoidable healthcare costs in our nation. That’s the bad news.
Here’s the good: The healthcare industry is responding to this critical problem by developing and adopting models that are more patient centered, a system that emphasizes patient understanding, engagement, and outcomes rather than merely collecting fees for service. Companies are rapidly consolidating through mergers and acquisitions with the objective of delivering more wraparound offerings that are easier to access for patients.
“The enormity and gravity of this challenge cannot be overstated. By one estimate, roughly 90 percent of American adults may not possess adequate health literacy to take care of themselves,” said Christopher Helmrath, Managing Director of SC&H Capital. “This has many serious consequences. For example, those who lack health literacy routinely fail to take advantage of preventative measures, and they tend to rely on higher-cost offerings, such as hospitals, when preventable issues grow serious. This is detrimental for all involved — patients, care providers, and payers.”
SC&H’s new report, “Capital Insights: Patient Engagement,” delves into a variety of issues, from the sweeping changes underway in healthcare delivery and promising patient engagement strategies to the driving factors behind mergers and acquisitions in the spaces of patient engagement and networks and delivery expansion.
About Capital Insights
SC&H Capital has launched Capital Insights – a content series to highlight our in-depth knowledge of prominent industries in the market place through the perspectives of innovation and differentiation. Our goal is to share actionable insights that businesses can use to assess their competitive advantage and potential strategic options through this information.