Hospitals have been the main place where people get care, especially when they need to stay overnight. But now, many people are going to outpatient centers and ambulatory care places instead. This change is happening for both money reasons and health reasons.
Healthcare spending in the U.S. is growing faster than the overall economy. A 2024 report says that healthcare costs will keep growing faster than the U.S. economy each year through 2032. Because of this, providers must find cheaper ways to care for patients. Outpatient care usually costs less and can handle more types of care without needing patients to stay overnight.
From 1994 to 2018, hospital money from outpatient care rose from 28% to 48%. This shows that patients and their insurers want care that is easier to get and costs less. Surgeries done without staying in the hospital and care received at home are expected to grow a lot by 2034. At the same time, inpatient hospital visits will grow only a little, about 3%, experts say.
Because there are fewer people using inpatient hospital beds, hospitals will change. By 2030, hospital revenue from inpatient care is expected to drop by 35%, and the need for hospital beds could fall by nearly 44%. This means there will be fewer hospitals, and those that remain will be smaller and more focused on special types of care.
In many cities and areas, health systems will combine and reorganize to use their resources better as fewer patients stay overnight. Providers are encouraged to build strong networks of outpatient clinics, urgent care centers, and virtual health services so patients can get care where they want.
With fewer inpatient stays and rising money pressures, health systems are joining together through mergers, partnerships, and sales. This strategy helps them stay strong.
Since 2014, hospital mergers have been increasing steadily. The top 10 health systems now control about 24% of the market. Their revenue grew much faster than smaller systems between 2012 and 2018. The biggest systems, those with 30 or more hospitals, have grown even more and can serve more patients.
These mergers help lower costs, improve how care is coordinated, and reduce repeated work. In late 2024, many health systems sold some hospital properties to move money into outpatient care. One health system raised $4.8 billion by selling 14 hospitals. They used the money to invest in care areas expected to grow more.
The move to outpatient care, virtual visits, and preventive care has changed how health systems deliver services. They must adjust their plans to offer more patient-focused services in cheaper and easier places.
Joining together helps health systems spread their resources over different care sites. It also helps them invest in new ways to deliver care. Experts note that doctor shortages remain a challenge. Joining systems helps build bigger doctor networks and better coordinate care to meet patient needs.
Using artificial intelligence (AI) and workflow automation is important for adapting to these changes. AI can improve how health systems run and talk to patients.
AI is being used more and more in health systems to help reduce the work doctors and nurses do on paperwork. Dan Burton, the CEO of Health Catalyst, says that by 2025 AI will be an important tool for daily healthcare work.
Doctors and staff often spend too much time on scheduling, billing, and getting insurance approvals. AI can lower this workload. Jason Jones says this helps end “administrative angst” and waste. It also lets providers work better and speeds up care for patients.
AI also helps improve how patient information is shared. Daniel Samarov says AI makes patient data transfer more reliable, accurate, and faster. Since more care happens outside hospitals now, good communication between outpatient clinics, urgent care centers, and virtual health is key for safe and continuous care.
AI can automate tasks like answering phone calls in call centers and front desks. This reduces wait times and makes patients happier. Some companies use AI to handle front-office phone duties, lowering staff work and making sure patients get info or appointments quickly.
As AI and digital tools grow, protecting health data from cyberattacks is more important. Kevin Scharnhorst points out that more ransomware attacks are happening in healthcare. This means health systems need to spend more on cybersecurity.
AI can also help fight cyber threats by predicting attacks and speeding up responses to incidents. This helps keep patient information safe as more health data moves online.
Operational Adaptation: Administrators should change workflows using AI and automation to work more efficiently and reduce staff burnout. Investing in AI phone systems helps lower costs and improves patient access.
Asset Portfolio Realignment: Owners need to move resources from less-used inpatient hospitals to outpatient care centers. They should consider mergers and partnerships that build better care networks based on market needs.
Physician and Staff Alignment: With doctor shortages, it is important to connect doctors through bigger networks and flexible staffing as part of consolidation.
Cybersecurity Preparedness: IT leaders must focus on strong cybersecurity to protect AI tools and digital health systems from data breaches and ransomware.
Measurement and Culture: Leaders need to set real goals for AI and automation projects. They should track progress well and encourage openness to new technology.
By 2030, inpatient hospital revenue is expected to drop by 35%, and the need for hospital beds may fall by 44%. (Deloitte Insights)
Outpatient revenue grew from 28% to 48% between 1994 and 2018. Outpatient surgery is expected to grow by 21% by 2034. (Deloitte, EY-Parthenon)
The top 10 health systems now control about 24% of the U.S. market, with revenue growth nearly twice as high as smaller systems. (Deloitte Insights)
Healthcare spending will grow faster than GDP through 2032, pushing the need for more efficient care methods. (EY)
Almost half of health Chief Information Officers see generative AI as giving double returns on investment, but only 13% have plans to use it soon. (EY)
Growing ransomware threats make healthcare providers spend more on cybersecurity and use AI-based defenses. (Health Catalyst)
The healthcare system in the United States is changing rapidly. These changes bring both challenges and chances for clinic managers, owners, and IT staff. Knowing about the shift to outpatient care, health system mergers, and the use of AI and automation is important to keep up with the future of healthcare.
Making these changes wisely and checking how well they work can help healthcare groups stay steady, efficient, and focused on patient needs in this changing environment.
AI use cases will mature, focusing on practical improvements in decision support and automation of administrative tasks, moving beyond initial hype.
AI will streamline communication by enhancing the efficiency, reliability, and accuracy of conveying essential patient information across various processes.
AI is expected to reduce administrative angst and costs, thereby improving clinician productivity and operational efficiency.
Healthcare technology will undergo a reinvigoration, focusing on transforming care delivery and design while consolidating tech portfolios to streamline operations.
The deployment of AI in key areas could significantly affect revenue and costs, leading to financial improvement and operational reliability.
Healthcare leaders need to measure progress effectively and set realistic expectations to successfully integrate AI technologies and build a supportive culture.
Hospitals will need to integrate AI to automate the closure of gaps in care, enabling personalized and timely preventive healthcare messaging.
Increased budget allocations will be necessary for cybersecurity measures as ransomware threats rise, prompting enhanced defensive strategies and recovery controls.
There will be pressure for hospitals to shift care models towards outpatient settings, requiring strategic consolidation for survival.
AI will become essential, moving from hype to necessity, particularly in applications that enhance care quality, reduce waste, and streamline operations.
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