The industry will be at the crossroads of several trends: demographics, proposed Medicare changes, staffing constraints, AI, and deregulation.
The health care industry will be at the crossroads of several trends in 2025: demographics, proposed Medicare changes, staffing constraints, AI innovations, and deregulation.
Demographics will determine the demand for health care services, while Medicare changes, staffing constraints, and technology will determine the supply of these services. Together, these trends will determine the quantity and quality of industry growth in the new year.
Ben Johnston, chief operating officer of Kapitus, sees favorable demographics and innovative treatments driving health care industry growth in the new year.
“We continue to be bullish on the health care industry as the macro forces of an aging U.S. population and new treatment innovations make health care an attractive industry in 2025 and beyond,” Johnston told The Epoch Times.
However, he sees proposed changes to Medicare that would give the states more control of the program and proposed work requirements in exchange for coverage limiting the total number of insured, thus constraining demand for health care services.
In addition, Johnston believes staffing shortages across the industry are exacerbated by limits on immigration, constraining the supply of health care services.
“Reducing future legal immigration could pose a significant challenge to the industry and drive both prices and wait times higher,” he said.
Thomas Kluz, the managing director of Venture Lab, is also concerned about staffing constraints in 2025 for different reasons.
“The pandemic, system inefficiencies, and wage cuts continued to be a present burden on health care workers on top of their drained physical and mental health,” Kluz told The Epoch Times.
He thinks AI technology could help ease the situation.
“AI and automation will be key to taking some of this pressure off by reducing administrative burdens,” he said.
For Dr. Ofer Sharon, CEO at OncoHost, the use of AI in health care and life sciences, such as machine learning and advanced image processing, will significantly drive the health care industry’s growth in the new year.
“For instance, in drug discovery, 2025 may see the first AI-discovered or AI-designed therapeutic targets progressing to first-in-human clinical trials,” he told The Epoch Times via email.
