Preparing Your Health Business for 2014 – What to Expect in Next Year?
Do you have a small business and want to know what to expect in next year? Are you the owner of a new enterprise; in healthcare industry for example? PwC’s Health Research Institute has projected that 2014 medical cost trend will be 6.5%. In 2013 the percentage was of 7.5%. This projection is based on careful analysis of medical costs on the large employer market, that is covering about 150 million Americans. The estimation for the net growth rate, after accounting modifications such as bigger deductibles, will be about 4.5%.
Every year, the Health Research Institution releases the prediction for the next year’s medical value trend based on the activity in the market that are offering employer-based insurance. For the projection of 2014, HRI has interviewed health plan officials and actuaries (there are 95 million people covered by the companies together), health policy experts and industry executives. The institute also analysed the results of 35 industries with more than 1.000 employers. The report showed that are four main factors that decreased medical cost trend in 2014: readmissions ratchet down, high deductibles are going mainstream.
The principal two factors that „inflated” the medical cost trend in 2014 are represented by the fact that speciality drug costs revert generic drug savings and by the industry consolidation that can lead to higher costs. In a more general understandable way, there are two main principals about the health care industry. Everywhere we are looking we are seeing people going to get routine issued addressed online, there is a growing business on this area. This is taking a cost out of the impatient setting, and you are getting lower cost.
The second principal is that employers are finding high values networks. They are going to pay the cost because it is a demonstrated, expertise, quality and value place. The employer thinks it is worth it because is going to cost less on a long term. Also, there is a new rule imposed for the whole health delivery system (hospitals, clinicians, etc) It will start paying penalties if a patient is readmited so they must evaluate the high risk cases, who may come back for hospital in order to prevent loosing money.
Do you have a small business? Do you have a large enterprize? Or do you want to start a new business?
In order to know what the future brings you have to take a peek in the past and learn from the best companies on the market. For example, in 2012-2013, 29 companies have implemented in net 3 or more reforms and improved their business regulatory systems or related foundations. These economies are from all income groups: high, upper, middle, lower middle and lower income. Among them, 10 stand out as reduced the distance to the top: Ukraine, Rwanda, Burundi, the Russian Federation, the Phillipines, Kosovo, Dijbouti, Guatemala , Cote d’Ivoire and the former Yugoslav Republic of Macedonia.