By Hilton Hudson

According to a recent peer-reviewed study, health spending is projected to grow 5.4 percent from 2022-31, and account for roughly 20 percent of the U.S. economy by the end of that period. Those figures should encourage anyone left shell-shocked by the negative headlines about the business of healthcare, including a wave of hospital closures and negative operating margins among many surviving businesses. The fact that profit margins presented a mixed picture in 2023 should signal a long road to financial recovery.

As hospitals and health systems set their budgets for 2024, a unique set of priorities has emerged that go beyond mere survival.

New digital tools bring the potential to increase health equity and improve patient outcomes in financially strained regions. Expanding access to ACA-affiliated insurance plans should potentially improve patient access to basic healthcare. Meanwhile, the looming threats of digital cyberattacks and increased violence against healthcare workers will force providers to remain vigilant on multiple fronts.

Here are five trends to watch in the business of healthcare in 2024:

Focus on information security
A data breach affecting nearly 2 million patients was the subject of one class-action lawsuit in January. Another $4.3 million settlement was agreed to in January as the result of a separate data breach. These cases came less than two years after a $6.85 million class-action settlement was reached, compensating more than 10 million patients.

In each case, sensitive medical information and other private data was accessed by hackers over a period of days, weeks, or months. All should serve as a warning to hospitals and health systems about the threat of cyberattacks.

As organizations consolidate via mergers and acquisitions, or consider reducing their IT staff as part of cost-cutting measures, the importance of information security only increases. A data breach could be financially devastating, and erode the public trust in their local hospital or health system. Expect information security to be more vigilant in the cat-and-mouse game between hackers and providers going forward.

Addressing healthcare disparities
The effects of racial gaps in healthcare are well-documented. African American communities are more vulnerable to severe weather and floods, and are at higher risk to experience asthma as a result of polluted air, than other communities. Black women suffer from three times the maternal mortality rate as white women. People of color face disproportionate barriers to accessing mental health services.

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