However, even with these challenges, leaders said the healthcare industry had made progress in several areas over the last year. For example, 79% of leaders said progress has been made in innovation and modernization, especially with electronic medical record integration and automation efforts.

Some other areas of progress include data and analytics, health equity, and organizational strategy. Other areas where leaders are seeing slightly less progress include health ecosystem innovation, consumer engagement and experience, care delivery innovation, and care payment and funding. 

What healthcare leaders are planning for the future

To build a modern, sustainable health system, 91% of leaders said improving health equity was an area of importance. Other important focus areas include data and analytics maturity, organizational strategy, care delivery innovation, and care payment and funding evolution.

According to Optum, all these focus areas point "toward a consumer-centric system, one with deepened understanding of the individuals, populations and communities it serves."

Leaders said their organizations are currently engaging in several activities to advance the path to value for patients. For example, 43% of leaders said they are "employing data to create patient views and assess population health opportunities," and 38% said they are "addressing unnecessary utilization and care variation."

Between 30% and 35% of leaders are also implementing machine learning or artificial intelligence (AI) technologies, expanding employee awards and incentives from value-based profits, expanding insights to track performance, and conducting a market and/or organizational assessment.

Among leadership teams, many are working to achieve alignment, set priorities, and boost decision-making.

"Leaders are looking at the forces coming into the market and accepting the reality that they need to act now," said Rae Woods, a VP and national spokesperson at Advisory Board and host of the Radio Advisory podcast. "We're seeing them move into the fast-follower category asking 'What's my next move?'"

For 2023, over 60% of leaders said they saw data and analytics as a top investment priority. Over 50% of respondents also chose regulatory compliance; patient, consumer, or member acquisition and retention; health equity; care delivery innovation; and digital solutions to engage with members, patients, as top priorities.

Compared to last year, fewer leaders said they were prioritizing spending in new products or services, going from over 60% to 41%. According to Optum, "[m]argins are too thin now to merit investment in new products or services."

To achieve near-term stability and long-term growth, Optum said leaders will need to:

• Address core challenges with strong partnerships
• Accelerate data-driven insights with machine learning and AI
• Prioritize a human-centered approach for both the workforce and consumers
• Be more agile with their decision making and governance
• Encourage cross ecosystem connectivity

"Facing a breadth of industry headwinds, leaders acknowledge that financial sustainability and growth depends on insights they can obtain, their internal capacity for proactive decision-making, and the partnerships they can rely on," Optum writes. (Kayser, Becker's Hospital Review, 8/15; Optum report, accessed 8/16)

* Advisory Board is a subsidiary of Optum. All Advisory Board research, expert perspectives, and recommendations remain independent.  

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