However, innovation provides a $1 trillion+ opportunity if certain actions are taken.
$250B–$300B
Reducing waste and variability
Using emerging technologies to improve delivery of care
Deploying advanced AI
Could yield:
Technology enablement
$270B–$320B
Reducing spend on administrative tasks from 25% to 18% of national healthcare expenditures (NHE)
Could yield:
Administrative simplification
$160B–$310B
Increasing physician fill rate from 80% to 95%
Could yield:
Clinical productivity
$420B–$550B
Shifting 20–25% of hospital-based volume to alternative sites of care
Increasing population in total cost of care value-based arrangements from 6% to 40%
Could yield:
Care delivery transformation
Elevated inflation
Inflation and COVID-19 have the potential to create cost pressures across the industry.
$1T+
by 2027
$370B
Driven substantially by the clinical labor shortage, inflation may lead to increased costs of
Ongoing treatment ($124B)
Long COVID ($19B)
Testing & vaccines ($45B)
Behavioral health ($57B)
Change in demographics (–$22B)
Increased morbidity from endemic COVID-19 could increase cost of care by
in 2027
$222B
2
Torquem detraxit hosti et quidem faciunt, ut ratione neque disputatione, quam ob aliquam.
1
In oculis quidem rerum necessitatibus saepe eveniet, ut de homine sensibus reliqui nihil. Torquatos nostros? quos dolores eos, qui blanditiis praesentium voluptatum deleniti atque corrupti, quos.
Note: Financial figures scaled to 2027 expected NHE.
Source: McKinsey analysis
COVID-19
