A look back: The 3 biggest trends and changes affecting health systems in 2024
In 2024, health systems across the United States navigated a year of significant transformation. Key challenges included heightened scrutiny of the 340B Drug Pricing Program, ongoing workforce shortages, and an increase in hospital-owned specialty pharmacies. These trends reflected broader shifts in the healthcare landscape, influencing both operational strategies and patient care delivery. Take a look at our recap of the 3 biggest trends this year, and be on the lookout in January for our 2025 health system outlook.
3. Increase in hospital-owned specialty pharmacies
Hospital-owned specialty pharmacies continued to expand in 2024, driven by the need to improve care coordination and manage rising drug costs. Specialty medications accounted for 55% of total pharmacy spending in 2024, according to a study by IQVIA, emphasizing the financial and operational importance of managing these high-cost therapies effectively.
Key trends
Hospitals sought to integrate specialty pharmacies into their networks to better align medication management with clinical care. This trend not only provided an opportunity to improve patient outcomes but also allowed health systems to capture additional revenue streams and reduce reliance on external pharmacy providers.
What it means for health systems
The growth of hospital-owned specialty pharmacies allowed health systems to enhance patient adherence to treatment, streamline prior authorization processes, and improve overall patient satisfaction. However, this shift required significant upfront investment in infrastructure, technology, and staff training.
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2. Persistent workforce changes
The healthcare workforce crisis continued in 2024, with severe shortages affecting nearly every aspect of care delivery. Burnout among clinicians, coupled with insufficient wage growth and competition from non-healthcare industries, exacerbated staffing challenges. A report by Deloitte projected that the shortage of registered nurses alone would surpass 250,000 positions by the end of the year.
Key findings
According to a study in the Journal of Healthcare Management, health systems with staffing shortages reported a 22% increase in patient wait times and a 15% decrease in patient satisfaction scores.
What it means for health systems
To address workforce shortages, many health systems focused on creative retention strategies, such as offering flexible schedules, competitive compensation, and mental health support. Additionally, some organizations turned to automation and telehealth solutions to optimize efficiency and reduce the workload on overstretched teams.
1. Heightened scrutiny of the 340B program
The 340B Drug Pricing Program, a cornerstone for hospitals serving vulnerable populations, faced intensified scrutiny from pharmaceutical manufacturers and policymakers in 2024. Some companies implemented new policies, requiring hospitals to pay full price upfront for medications and seek rebates later. This approach aimed to improve transparency and ensure the program’s proper use, but introduced operational and financial challenges for participating health systems.
Key data
A report by the American Hospital Association highlighted that over 45% of 340B-covered entities reported cash flow difficulties due to these policy changes, leading to delays in providing essential medications to underserved populations.
What it means for health systems
Hospitals reliant on the 340B program had to adopt more robust financial management strategies to mitigate delayed reimbursements. Additionally, many systems invested in technology and administrative resources to navigate increasingly complex compliance requirements, diverting focus from direct patient care.
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Other notable changes in 2024
While these three trends dominated the healthcare landscape, several additional factors also influenced health systems:
- Advancements in artificial intelligence: AI tools were increasingly used for diagnostics, patient monitoring, and administrative efficiency.
- Focus on health equity: Health systems implemented targeted programs to address social determinants of health, aiming to reduce disparities in access and outcomes.
- Financial pressures: Rising costs and declining reimbursements continued to challenge health systems, leading to increased interest in value-based care models.
Conclusion
In 2024, health systems faced an intricate mix of challenges and opportunities. The heightened scrutiny of the 340B program demanded better compliance and financial planning. Workforce shortages necessitated innovative recruitment and retention strategies, while the growth of hospital-owned specialty pharmacies highlighted the importance of integrating pharmacy services into broader care delivery models.
These trends underscore the need for health systems to remain agile, leveraging technology and operational changes to navigate the evolving healthcare landscape. By addressing these challenges proactively, health systems can continue to prioritize patient care while maintaining financial and operational stability.
References
- American Hospital Association, 340B Program Trends and Challenges
- Deloitte, 2024 Workforce Trends in Healthcare
- IQVIA, Specialty Pharmacy Spending Analysis: 2024
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