McKinsey forecasts U.S. healthcare advances in 2024
NEW YORK, UNITED STATES — Experts from consulting firm McKinsey & Company predict major progress in the U.S. healthcare sector in 2024.
According to McKinsey Partner Neha Patel and Social, Healthcare, and Public Entities (SHaPE) Global Leader Shubham Singhal, a notable shift in the industry is the increasing reliance on outsourcing, especially in health systems.
With a focus on improving labor productivity and integrating technological advancements in administrative and care delivery workflows, health systems are adopting strategies like process standardization and increased use of digital care.
This approach — including the early adoption of artificial intelligence (AI) in administrative workflows such as revenue cycle management — is vital for margin recovery and cost optimization.
Another area of growth is the Healthcare Services and Technology (HST) sector, which is expected to experience rapid expansion. In 2022, McKinsey’s estimates put the sector’s profit pool at $49 billion.
Patel and Singhal predict a 12% compound annual growth rate (CAGR) in the HST sector until 2027 due to the demand for technology-driven solutions to enhance efficiency and address labor challenges. Outsourcing and the adoption of generative AI and automation are key trends in this sector.
Meanwhile, pharmacy services are projected to grow from $550 billion in 2022 to $700 billion in 2027. However, the sector faces its own set of challenges, including reimbursement pressures and the need for operational adjustments to sustain growth.
Overall, Patel and Singhal expect the U.S. healthcare profit to grow at a 7% CAGR from $583 billion in 2022 to $819 billion in 2027. Recovery is expected to begin in 2024, with margin and cost optimization and reimbursement rate increases playing crucial roles in the industry.
