The healthcare landscape is rapidly evolving, with notable shifts underway in areas like AI and technology, value-based care, women’s health, public policy and private equity investment.
At the 2024 J.P. Morgan Nashville Healthcare Leadership Summit, health executives, investors and industry experts gathered to discuss these critical trends shaping the future of care.
Here are some of the top takeaways from the summit that healthcare leaders need to be aware of as they navigate the changing business landscape and look to capitalize on new opportunities.
1. The trend for value-based care is still strong
Ask anyone—patient, clinician or health care provider—if they’d rather prevent a stroke or pay for the treatment of a stroke; the overwhelming answer will be to prevent one. Although near-term headwinds in value-based care (VBC) have challenged platforms, and likely will for the next 12-18 months, there is clearly optimism for VBC models over fee-for-service care ones.
Industry leaders shared additional insights on value-based care:
- The industry must address the shortage of primary-care physicians, who play a crucial role in the success of value-based care models as patients’ first and most frequent point of contact. Primary care models that have the ability to provide proof points of value creation will likely differentiate themselves in this market.
- VBC providers must defeat the common misconception that their approach withholds necessary care from patients, when instead the goal is more efficient, high-quality care that leads to better clinical outcomes and improved overall health.
2. AI is unlocking clinical efficiency and digging into data
The patient and the clinician experience remain paramount concerns for the healthcare industry, and AI can positively affect both. With technological advancements comes the opportunity for AI to analyze MyChart data or answer common billing or administrative questions.
“AI is a great enabler,” said Bruce Broussard, CEO of Humana, during his keynote. “It allows clinicians to spend more time being clinicians instead of administrators.”
In addition to improving users’ experiences, AI plays a key role in interpreting vast amounts of multimodal data. Healthcare organizations face a growing demand to make sense of complex information, and tech platforms are addressing this need. Technological advancement is not only freeing up clinician time, but also helping providers interpret the billions of data points that come with each patient in terms of symptoms, risk factors and social determinants of health.
Humana CEO Bruce Broussard, at right, gave a keynote presentation moderated by Cory Rapkin, Vice Chairman of Healthcare Investment Banking at J.P. Morgan.
3. Addressing access and equity in women’s healthcare
Nearly 7 million women in the U.S. are affected by maternal healthcare deserts, meaning they live in a county that does not have an obstetric hospital or birth center, or an obstetric provider.
“When we think of access and equity, we are thinking about the overlooked but not the forgotten,” said Simmone Taitt, Founder and CEO of Poppy Seed Health, a telehealth provider of pregnancy care and postpartum care.
Recent drives in healthcare equity have highlighted discrepancies in marginalized and rural communities, but there is still more to be done. Now, the challenge is developing healthcare initiatives to bring those communities quality care.
Experts and leaders in the women’s healthcare industry called for ways to address these maternal healthcare deserts, and women’s healthcare more broadly:
- Tech-forward or digital-first healthcare: More people are seeking virtual care. These practices not only provide convenience and efficiency toward the patient experience, but they increase ROIs by eliminating large operating costs that come with brick-and-mortar facilities.
- One-stop shopping: Women prefer providers who are one-stop shops for primary care, gynecological services and mental health. Companies are looking for new ways to integrate these care continuums into shared platforms.
4. The 2024 election looms large over certain healthcare policies
With the presidential campaigns in a tight race and razor-thin House and Senate majorities, the November election results could tip a handful of different ways. The outcome of the 2024 election will affect several key policies involving healthcare that are set to expire in 2024 or 2025:
- Prescription drug pricing: The provisions in the Inflation Reduction Act that lowered specific drug costs for people on Medicare are set to expire at the end of 2025. If these aren’t extended, it might mean higher out-of-pocket costs for Medicare beneficiaries.
- Insurance subsidies: As part of the Inflation Reduction Act in 2022, Congress extended pandemic-era premium subsidies for people who buy coverage on the Affordable Care Act marketplaces. If these expire, many could be priced out of coverage, causing uninsured rates to rise.
- Telehealth flexibilities: Many telehealth policies, such as those eliminating geographic care restrictions and certain in-person visit requirements, will expire at the end of 2024. If not extended, it could limit access to virtual care, especially for patients in underserved regions.
5. Experts are optimistic about the capital raising environment
Capital raising continues to strengthen across the spectrum with a focus on sustainable growth. The segments of capital markets that are performing particularly well are:
- High quality, early-stage platforms. These companies continue to be funded, drawing fresh capital from VC investors.
- Institutional loan markets and direct lending markets. Institutional loan markets have picked up this year and direct lending markets remain impressively resilient, creating a more attractive issuer environment despite rates being higher for longer.
We’re here to help
J.P. Morgan has years of experience in the healthcare sector, and we can help you navigate the shifting business landscape. Contact one of our bankers to learn more.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for disclosures and disclaimers related to this content.
