Reflections on the US Healthcare Landscape in 2024

Insights from Sanjeev Maurya, Vice President of Operations, Silverskills

Throughout 2024, the US healthcare sector was put in the spotlight for both challenges and the acceleration of digital transformation for better patient care management.

Artificial intelligence (AI) dominated almost all spheres of the healthcare ecosystem. Meanwhile, unprecedented cyber-attacks, such as the Change Healthcare attack, were made on healthcare data, which is now considered a goldmine for threat actors.

As we march into 2025, it is crucial to reflect on the major challenges and trends that shaped US healthcare in 2024. This way, organizations can better understand the current healthcare landscape, and strategize more effectively to thrive.

Reflections on the 2024 Healthcare Landscape

• Change Healthcare Cybersecurity Attack

  In February 2024, Change Healthcare fell victim to a ransomware cyber-attack that crippled the healthcare system in the US. Change is one of the country’s largest clearinghouses for insurance billing and payments, handling around 15 billion transactions each year, or about one in every three healthcare claims.

  It is difficult to overstate the severity of the attack. Thousands of hospitals, pharmacies, and physician practices could not receive payments or submit claims. Amid the paralysis, many organizations were unable to provide patient care and stared financial collapse in the face.

  The attack sent shockwaves throughout the US healthcare sector, and many organizations have realized the criticality of implementing strong cybersecurity measures.

• GLP-1 Drug Impact

  GLP-1 medications, popular for weight loss and appetite suppression, quickly became a common treatment for obesity in the US.

  A study posted in JAMA Network Open highlighted a dramatic 132.6% increase in GLP-1 use from the second half of 2022 to the second half of 2023 (from 1.89 to 4.41 patients per 1,000).

  Meanwhile, the use of bariatric surgery decreased by 25.6%. This shift is expected to cost the food and beverage (F&B) industry an estimated $48 billion in lost consumer spending as GLP-1 use continues to rise, impacting both healthcare and broader industries.

• The Role of Payvider

  The healthcare landscape underwent a transformative shift towards the “payvider” model. A payvider (or payment provider) is an integrated healthcare organization. It both delivers healthcare services and takes on the role of a healthcare payer, often a health insurance company.

  Healthcare remained a pivotal issue in the 2024 US presidential election.

  Traditionally, there has been friction between payers and providers, resulting in conflicts in incentives and payments. While payers aim to minimize the cost of delivery of care, providers aim to gain more incentives for the same service levels. The model of payvider bridges this gap and allows both entities to work in a collaborative way to minimize cost and provide better patient care.

  Payviders are at the forefront of the shift to value-based care, where the focus is on delivering high-quality, efficient care while managing costs. This evolution signals a move toward more patient-centered, coordinated healthcare systems in the US.

• The US Election

  Healthcare remained a pivotal issue in the 2024 US presidential election, with debates centered on prescription drug costs, Covid-19 responses, and the opioid crisis and its implications for border policies.

  One of the most contentious topics was abortion rights, with several states voting to expand abortion access via ballot measures. The outcome of these debates – especially regarding reproductive rights – proved crucial in shaping voter preferences.

• Price Transparency

  In 2019, the Federal government mandated that both hospitals and insurers publish their negotiated prices. The federal hospital price transparency regulations took effect in 2021, requiring hospitals to also publish prices for certain common elective procedures in a consumer-friendly format, like a price estimator tool. Non-compliance resulted in a penalty ranging from $100,000 to more than $2 million annually.

  In 2024, hospitals moved towards applying a CMS template for publishing price data. The expanded data elements include standard charge types, payer-specific negotiated charges, items/service description, and billing codes.

  While hospitals have continued their efforts to comply by publishing pricing data, adherence has declined, with full compliance dropping from 34.5% to 21.1% from February to November in 2024.

  This shift has sparked an ongoing debate about the effectiveness of transparency in driving down costs and improving consumer choice, while highlighting the complexities of enforcing these regulations across the healthcare system.

• Mental Health

  In 2024, mental health remained a critical challenge in the US. For example, according to the American Psychiatric Association’s annual mental health poll, 42% of US adults state that their anxiety has increased since the previous year.

  Mental health providers throughout the country share a sense of urgency to find new ways to meet the high demand for services, and innovators are exploring solutions that diverge from traditional therapy models.

  However, the demand for mental health services continues to outpace available resources, with many individuals, particularly young people, unable to access the care they need.

  The healthcare system is increasingly turning to digital tools, such as mental health apps, and alternative therapies, but issues like treatment availability, affordability, and stigma still pose significant barriers to effective care. For example, certain mental health apps can cost between $300 and $1,500 per year and are not covered by insurance.

  The mental health care system is in urgent need of reform to address these growing challenges.

• Importance of Social Determinants of Health (SdoH)

  Social determinants of health (SDOH) took center stage in US healthcare discussions in 2024. SDOH – factors like socioeconomic status, education, and environment – are now recognized as responsible for a significant portion of health outcomes.

  As healthcare providers, insurers, and policymakers increasingly focus on capturing SDOH data, the industry is moving toward more holistic, patient-centered care. This growing awareness of the social factors impacting health is shaping new strategies to improve outcomes and reduce health disparities across the country.

2024 marked a year of significant challenges and transformation for the US healthcare landscape. From the rapid adoption of GLP-1 medications reshaping obesity treatment to the growing prominence of the payvider model, the landscape evolved in ways that reflected both opportunities and tensions within the system.

As the year ended, the healthcare sector stood at a crossroads. Evolving trends suggest that focus is increasingly shifting toward more integrated, patient-centered, and cost-conscious care in the years to come.

If you want to take a deeper dive into how the healthcare landscape is transforming, contact us now and speak to one of our experienced consultants.