Healthcare Trends in Focus
This report is the first in an ongoing series we plan to publish on a monthly basis to provide our view and analysis of current issues and/or longer-term trends where appropriate. This will include issues relevant to the overall healthcare economy with a focus on healthcare services and medical devices. For this issue, we provide our view on the four key ‘mega trends’ that underpin the stability and growth of the health economy. These are: (1) economic growth and stability; (2) innovation; (3) demographics; and (4) health policy and regulation. In addition, we discuss the mounting evidence for an uptick in health spending trend this year. Within that, we also discuss how higher trends fit with our economic model tracking the decades-long lagged relationship between the rate of healthcare spending growth and the economic cycle. While recent multi-year trends were skewed by COVID-19, the implications from the historical model suggest the healthcare spending trend will accelerate from here, with a further boost from the impact of inflation.
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