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Tech and Services Continue to Grow Despite Healthcare System's Ongoing Financial Strain

Source: McKinsey & Company

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The US healthcare system is under considerable financial pressure, with industry EBITDA as a percentage of national health expenditures declining significantly from 11.2% in 2019 to a projected 8.7% by 2027. Key factors contributing to this decline include enrollment drops in Medicaid and ACA plans and an uptick in uncompensated care, impacting both payers and providers. However, growth opportunities are emerging in areas like health services and technology, specialty pharmacy, and ambulatory care, driven by demographic changes and technological advancements. As the industry shifts, healthcare leaders are urged to adapt traditional models and enhance their operations through innovative technologies to stay competitive.

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Opens on McKinsey & Company