Healthcare’s Legacy Sick-Care Construct Threatens Its Ability to Realize Triple Aim of Care According to New HFS Research Report

HFS Research Horizons Report: Healthcare Providers (HCP) Service Providers, 2024 examines the role of healthcare service providers in care delivery and their ability to address challenges in healthcare costs, patient experience, and health outcomes in the U.S. and across the globe.

Key Horizons Report Findings:

• Without pandemic-driven stimulus, health systems feel pressure to remain financially strong.

• Healthcare providers now more open to technology-enabled innovation to improve productivity, health outcomes, and financial woes.

• There has been an acceleration of outsourcing and offshoring for services and technology enablement over the past couple of years.

• GenAI hand likely overplayed relative to outcomes.

HFS Research released its Horizons Report: Healthcare Provider (HCP) Service Providers, 2024, evaluating supply-side providers’ abilities to enable healthcare providers to achieve the Triple Aim of care – reduce cost of care, enhance experience of care, and improve health outcomes – across a range of dimensions. The study reveals that while many service providers have capabilities required to address attributes of the Triple Aim of care and have solid evidence of results, health systems and hospitals remain entrenched in a model of addressing episodic symptoms within the confines of a heavily regulated industry rather than focusing on holistic health and overall outcomes.

HFS Research examined 36 leading service providers’ roles in care delivery encompassing primary care, acute care, post-acute, and rehab, and then assessed and rated the healthcare providers’ capabilities across four dimensions using its Horizons assessment methodology. The report includes detailed profiles of each healthcare service provider, their Horizon placement, provider facts, and strengths and developmental opportunities related to delivery of care around the world.

“The Triple Aim of care has never been more important as we arrive at a point where clinical technology enablement should aid in the extension of life versus merely delaying death,” says HFS Research Executive Research Leader Rohan Kulkarni, report co-author. “The bias towards acute care has translated into underserving primary care, post-acute care, and rehab. Technology adoption in the non-acute care space for electronic health records and revenue cycle management is under 50%, indicating a huge opportunity to remediate and support basic healthcare.”

HFS Research CEO and Chief Analyst Phil Fersht agrees and says, “Our research indicates that healthcare’s sick-care model is thwarting its ability to achieve its goals. Demand for healthcare continues to increase as health outcomes decline. Providers must find a sustainable way to meet demand and improve outcomes. Accelerated technology-enabled care and clinical innovation, plus a connected healthcare ecosystem, holds real promise.”

Summary of Report Findings:

• Financial pressure grows
  
  Pandemic-driven stimulus is in the rearview. The new reality provides stronger pressure to remain financially above water, consistently.

• Experience matters
  
  The desire to improve the point-of-care experience and drive connectivity in a post-care scenario is growing to drive retention and value-based care (VBC) outcomes.

• Technology adoption accelerates
  
  Providers are more open to technology-enabled innovation to improve productivity, health outcomes, and their financial woes.

• Procurement shifts
  
  There is a material increase in outsourcing and offshoring for both services and technology enablement, with an acceleration over the past couple of years.

• Sophistication of capabilities
  
  Service providers have upped their ability to address complex clinical and financial challenges consistently.

• Expanding scale and impact
  
  Delivery footprint grows worldwide as does service providers' ability to impact outcomes across the Triple Aim of care.

• Over-indulgence of GenAI
  
  The investments, pilots, POCs, accelerators, and more are the tactical manifestation of GenAI. It is likely the GenAI hand has been overplayed relative to outcomes.

• Differentiation is fleeting
  
  Despite the sophistication of offerings, service providers are struggling to differentiate themselves both in terms of value and their market perception.

About HFS Research

HFS is a leading global research and analysis firm trusted at the highest levels of executive leadership. Our mission is to help our clients—major enterprises, tech firms, and service providers—tackle challenges, make bold moves, and bring big ideas to life by arming them with accurate, visionary, and thought-provoking insight into issues that impact their business. HFS analysts and strategists have deep, real-world experience in subjects they cover. They’re respected for independent, no-nonsense perspectives based on thorough research, demand-side data, and personal engagements with industry leaders. Visit www.hfsresearch.com.

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