Gartner Research

Healthcare Business Driver: The Health Cost Conundrum

Published: 06 January 2020

ID: G00463509

Analyst(s): Mike Jones, Mandi Bishop

Summary

Global healthcare and life science leaders face often-conflicting pressures to reduce care costs while also meeting financial and quality goals. CIOs must develop strategies to analyze effects and enable trade-offs that balance organizational objectives of cost control and revenue goals.

Table Of Contents

Analysis

  • Healthcare Spend Continues to Outpace Global Economic Growth — and Healthcare Models Limit Cost Controls
  • CIOs Must Enable Capabilities to Manage Top Five Cost Factors
    • Value-Based Care Models: Tying Payment to Outcomes
    • Waste: Eliminating Care and Pricing Failures, Fraud and Abuse, and Administrative Complexity
    • Social Determinants of Health: Analyzing the Life Context of Healthcare Cost
    • Increased Dependence on Continuous Therapy: Projecting the Effect of Aging, Chronically Ill Populations
    • Behavioral Economics: Predicting Influence on an Individual’s Health Choices
  • Implications
  • CIO Recommendations

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