Jan. 10 — The top 10 issues that will hold the healthcare industry’s focus in 2013 range from state implementation of the Affordable Care Act (ACA) to increased emphasis on convenience, price, and transparency, mobile security, and population management, according to a recent report.

PwC’s Top Health Industry Issues report, released today, identifies the following issues as key challenges for providers and payers as they work toward meeting ACA requirements and prepare for a shift in market dynamics. 

State decisions regarding insurance exchanges, expansion of Medicaid coverage, and insurance market regulation. The biggest challenge states could face in responding to these key issues in 2013 could be IT: Designing the infrastructure to create a single, seamless entry point to the exchange will require some states to overhaul existing Medicaid eligibility systems.

Increased emphasis on convenience, transparency, and price. As consumers have greater say in how they will spend their healthcare dollars, key players throughout the healthcare industry will find themselves competing on these three attributes.

Impact of excise tax on medical device companies. A 2.3 percent excise tax on medical device companies took affect Jan. 1, representing potentially $29.1 billion to the federal government over the next 10 years. The $380 billion global medical device industry will likely be unable to pass the tax on to its customers, but could look to its suppliers to share in the burden.  

Caring for dual eligibles. Dual eligibles—people who qualify for both Medicare and Medicaid—make up many of the 16 million people the ACA will add to Medicaid rolls by 2019. The cost of care for duals is skyrocketing—much of it wasted due to a lack of care coordination between the two programs—and 70 percent of state Medicaid spending on duals goes toward long-term care support services, such as nursing homes, according to the report.

Mobile device security. Physicians and nurses are bringing their own mobile devices to work, but many hospitals do not yet have a secure enough environment to protect sensitive patient information. According to PwC, only 46 percent of hospitals have a security strategy to regulate the use of mobile devices.

Redesign of healthcare delivery. Having already plucked low-hanging fruit with labor productivity and supply cost reductions, more hospitals in 2013 will embark on full-scale transformation efforts to redesign how they deliver care, according to the report.

Effects of customer ratings on hospitals and insurers. Pay for performance will take on new meaning in 2013 as consumer reviews generate penalties and bonuses for hospitals and insurers. Such reviews could generate a bonus payout of more than $3 billion for insurers and a hold back of $850 million for providers in 2013, according to PwC. 

Increased expectations related to pharmaceutical value. As costs shift to individuals, drug and device makers will be under greater pressure to prove value to consumers, PwC says. Providers and payers also will demand evidence that evidence that new drugs fill an unmet need or outperform similar products at a more reasonable cost.

Employers rethinking their role in health care. Employers have an opportunity to reexamine their long term role in providing healthcare coverage and explore alternative approaches provided by state and/or private exchanges. In 2013, CEOs will ask tough questions about how and why so many resources are going toward health care.

Population health management. Medicare's accountable care organization and patient-centered medical home initiatives laid a foundation for improving population health, but other collaborations are fueling growth in population health management. In 2013, more companies are likely to form partnerships to build their population health IT infrastructures and to share responsibility for patient outcomes and satisfaction, data collection and analysis, member education, and engagement, with a focus on at-risk populations, according to PwC.

Publication Date: Thursday, January 10, 2013