The year 2023 will begin with three disruptive forces already playing out.

The first is inflationary pressure on wages. The global labor market is expected to remain tight due to aging workforces and stringent immigration policies. The COVID-19 pandemic’s impact on labor force turnover rates will keep price inflation higher than pre-pandemic levels.

The second disruptive force is high energy prices. With GDP growth in the United States and Europe dropping sharply, strict legislation of energy prices will force healthcare organizations to explore options such as energy savings, fossil fuel-independent materials, and analytics for improving supply chain efficiency.

Finally, the third force is a need for unified access to patient data generated at home and at hospitals. This new playbook requires rethinking solutions portfolios, including the role of wearables, artificial intelligence, internet of medical things, and cloud to reduce human errors and improve efficiencies.

The bottom line is that 2023 provides a great opportunity for the healthcare and life sciences industry stakeholders to overhaul their approaches and strategies. Organizations must prepare to make more frequent operating model changes based on balancing a risk-taking view and managing a well-designed portfolio of products and services to stay competitive.

In this study, Frost & Sullivan offers 10 predictions for the healthcare and life sciences industry in the coming year. In 2023, the big story for this industry is the ramp up of a collaborative mindset between payors, providers, and healthcare organizations to foster innovation that will drive real benefits for patient care at home, and through that process partner in ways to bend the healthcare cost curve.

Author: Rishi Pathak