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How will the demographic trend impact the healthcare industry in the next 10-20 years?

Title: How will the demographic trend impact the healthcare industry in the next 10-20 years?

Essay , 2018 , 9 Pages , Grade: 1,0

Autor:in: Marie-Isabell Rust (Author)

Business economics - Miscellaneous
Excerpt & Details   Look inside the ebook
Summary Excerpt Details

The tendency to get older is not only an advantage, it also implies challenges for the individual, family and the society by an increased pressure on the healthcare industry due to increased expenses and the need to change existing paradigm.
The demographic trend is the major factor in determining the future development of the healthcare sector. This essay will clearly show the significant shift in demography and its consequences, the current status of the healthcare industry and the required development to master the demographic hurricane. I will prove that the current healthcare business models and approaches will not be able to manage the foreseeable challenges of an aging population. I will also outline potential solutions and required changes. The derived conclusions are only valid for developed geographies.

Excerpt


Table of Contents

1. Introduction

2. Demographic change

3. Consequences of demographic change

4. Current Healthcare system

5. The way out of the dilemma

6. Summary

Research Objectives and Key Themes

This essay explores the impact of demographic shifts on the healthcare industry in developed nations over the next two decades. It assesses how aging populations and changing lifestyles necessitate a transition from traditional, reactive healthcare business models to proactive, preventative, and technology-driven approaches to remain economically sustainable.

  • The influence of demographic trends, such as aging populations and declining fertility, on healthcare demand.
  • Consequences of shifting disease profiles and the rising necessity for professional long-term care.
  • Limitations of current reactive healthcare systems and the financial burden of the "Moral Hazard" dilemma.
  • Strategic shifts towards health promotion, individual responsibility, and digital healthcare solutions.
  • The role of centralization, collaboration, and early detection in optimizing healthcare efficiency.

Excerpt from the Book

The way out of the dilemma

With the knowledge of the future needs there is strong evidence that the healthcare industry will continue to develop above gross domestic product (GDP).xvii Healthcare industry is even supposed to take over a guiding function in the 21st century.xviii In 2014 $12,000 Billion were globally spent in the healthcare industry. 11% of GDP is expected to be spent for Healthcare in Western Europe in 2018.xix Healthcare occupations and industries are expected to have the fastest employment growth and to add the most jobs between 2014 and 2024 in the USA and will be the biggest employer in 2024 in the USA.xx Public spending for pensions, health and care will increase from 19% of GDP in 2013 to 23.8% in 2060 in Germany.xxi

Basically there are three major trends to manage the demographic trap - changed focus from disease management to health promotion including further development of non-conventional medical technologies, strengthen of individual responsibility and improved efficiency of the healthcare system.

Recent research confirmed that individual health is only determined with 20% by gene and 30% by the environment. 50% of the individual fate with respect to health is determined by the individual behavior.xxii Therefore the focus on healthier life-style including fitness and wellness will ensure that people will be able to actively participate in life even at high age. This will lead to increased market share of fitness and wellness in healthcare's domain. Based on this knowledge the health insurances will also reward this sector more. Therefore healthcare emphasize will shift from just treating diseases to prevention and health promotion. Revenues of the German fitness sector is expected to increase by 3% per year.xxiii

Summary of Chapters

Introduction: Outlines the challenges posed by demographic shifts and establishes the necessity for a paradigm change in healthcare business models.

Demographic change: Analyzes the primary factors driving population shifts, including fertility, life expectancy, and migration rates in Germany.

Consequences of demographic change: Examines the impact of an aging society on disease prevalence, the need for long-term care, and the shrinking skilled workforce.

Current Healthcare system: Critiques the reactive nature and inherent inefficiencies, such as the "Moral Hazard" phenomenon and siloed budgeting.

The way out of the dilemma: Proposes strategic trends like health promotion, digitalization, and centralization to secure the future of the healthcare sector.

Summary: Recapitulates the core arguments regarding the future growth of the healthcare industry and the urgency of technological and structural adaptation.

Keywords

Demographic change, Healthcare industry, Aging population, Health promotion, Digitalization, Telemedicine, Efficiency, Long-term care, Prevention, Moral Hazard, Workforce shortage, Economic impact, Chronic diseases, Individual responsibility, Healthcare reform

Frequently Asked Questions

What is the core focus of this publication?

The paper examines the long-term impact of demographic shifts, such as aging populations, on the sustainability and structure of the healthcare industry, specifically focusing on developed nations like Germany.

What are the primary themes discussed?

Key themes include the failure of current reactive business models, the increasing burden of chronic diseases, the shrinking availability of skilled labor, and the economic necessity of transitioning to preventative, technology-based healthcare.

What is the central research question?

The author addresses how the healthcare industry will need to adapt its current business models and approaches over the next 10 to 20 years to manage the challenges of a significantly aging population.

Which methodology is employed to derive conclusions?

The work utilizes a descriptive analysis of demographic data, healthcare trends, and macroeconomic projections to evaluate future requirements and potential strategic solutions for the healthcare sector.

What topics are covered in the main body?

The main body analyzes the drivers of demographic change, the resulting medical and social consequences, an evaluation of the current reactive healthcare system, and strategic recommendations for industry improvement.

Which keywords best characterize the work?

The work is characterized by terms such as demographic change, healthcare reform, digitalization, preventative medicine, and economic sustainability.

How does the "Moral Hazard" dilemma affect the current healthcare system?

The "Moral Hazard" refers to the tendency of insured individuals to over-utilize healthcare services because the costs are largely covered by solidarity-based insurance systems, which puts unnecessary financial pressure on the entire system.

What is the "Compression of Morbidity" theory mentioned in the text?

This theory suggests that as healthcare improves, the period of healthy years increases, thereby compressing disability and ill-health into a shorter final phase of life, which potentially optimizes long-term healthcare costs.

Why is the role of the family doctor emphasized for future healthcare?

The family doctor is seen as a central information manager who can handle the influx of data from specialized diagnostics, ensure continuity of care, and guide patients toward prevention, thereby improving overall system efficiency.

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Details

Title
How will the demographic trend impact the healthcare industry in the next 10-20 years?
College
University of Applied Sciences Dresden  (International Business)
Course
International Business Environment
Grade
1,0
Author
Marie-Isabell Rust (Author)
Publication Year
2018
Pages
9
Catalog Number
V427390
ISBN (eBook)
9783668714304
ISBN (Book)
9783668714311
Language
English
Tags
healthcare industry demographic trend healthcare business models
Product Safety
GRIN Publishing GmbH
Quote paper
Marie-Isabell Rust (Author), 2018, How will the demographic trend impact the healthcare industry in the next 10-20 years?, Munich, GRIN Verlag, https://www.grin.com/document/427390
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