We’re Spending More on Healthcare… According to the Centers for Medicare & Medicaid Services (CMS), total 2016 US healthcare spending was $3.3 trillion, a 4.3% increase from 2015, which equates to $10,348 per person and represents 17.9% of the Gross Domestic Product (GDP). Total 2017 healthcare spending increased another 4.6% to a total of almost $3.5 trillion, or 18.1% of the GDP. The personal health care price index increased from 2016’s 1.2% to 1.4% for 2017, but this is generally the lowest it has been, historically. With increasing enrollments and spending per beneficiary, 2017 Medicare spending increased 5.0%, compared to 3.6% for 2016, and Medicaid spending increased less during 2017, at 2.9%, compared to 2016’s 3.9% increase.

…And We’ll Be Spending More For 2018, the CMS estimates a 5.3% increase in total US healthcare spending; for the period, 2019–2020, an average increase of 5.5% per year; and for the 2021–2026 period, an average annual increase of 5.7%. Health care goods and services are forecast to increase 2.2% during 2018, compared to a 1.4% increase for 2017, primarily because of increases in prescription drug prices. Medicaid spending for 2018 will increase significantly, at a 6.9% rate, compared to 2.9% for 2017, because of a faster increase in the net cost of health insurance.

Healthcare Is Now the Largest US Employer Primarily because of the aging of the US population, the healthcare industry became the largest employer of all American workers during Q1 2018, outpacing manufacturing and retail, which have been the largest US employers for decades. Jobs in manufacturing and retail decreased significantly during the Great Recession because of globalization and automation, but healthcare employment increased every month during the worst economic period since the Depression.  The increase in healthcare employment has been primarily administrative roles instead of medical, such as physicians. During the next decade, the US Bureau of Labor Statistics forecasts 5 of the top 10 jobs will be in healthcare and elderly assistance.

Americans Don’t Hesitate to Comment on Healthcare Of all Americans participating in a November 2017 Gallup poll, 77% rated their personal healthcare as “excellent” or “good” and employed Americans essentially agreed, at 75%. Despite this positive feedback, 71% of Americans said major challenges are negatively affecting the US healthcare system, which was the same percentage from the 2016 poll. This result may be the reason why Americans are essentially evenly split about whether the government should operate the healthcare system, 48%, or a system based on private insurance, 47%.

The Marriage of Healthcare and Technology According to Accenture Consulting’s most-recent annual survey on digital healthcare trends, 48% of consumers were using mobile and tablet health apps, tripling the percentage since 2014’s 16%. This is driving consumers’ demand for more online healthcare access: make an after-hours appointment, 73%; attend a class about a specific condition, 71%; schedule a follow-up appointment, 65%; and discuss a specific health concern with a doctor, 62%. Despite consumers’ increasing demands and the healthcare industry’s increasing use of tech tools, a Ponemon Institute survey found the number of cyberattacks on healthcare organizations increased from an average of 11 during 2016 to 16 during 2017.

The Future of Healthcare As indicated above, emerging technologies will continue to be a significant healthcare trend, as more physicians and other practitioners are using clinical decision support tools, such as a computer providing practitioners with more information. All parties in the healthcare industry must be aware of the condition of the Affordable Care Act (ACA). Congress wasn’t able to repeal or replace it during 2017, and the termination of the individual mandate is certain to result in more uninsured patients. Because compensation models continue to increase and evolve, outcome accountability will increasingly determine the payments healthcare practitioners receive instead of based on time and/or diagnosis and treatment regimens.

Advertising Strategies As consumers continue to see increasing healthcare costs, local healthcare businesses and institutions should aggressively communicate how the strategies they are employing will keep costs low – and TV is the best medium to convey this brand-building message. Since TV viewership penetration is the largest among older Americans, healthcare businesses and institutions can use it cost-effectively to target this ever-increasing demographic with the specific services they’ll need as they age. Medical practices and other local healthcare businesses can also use TV to brand themselves as the local leaders in the acquisition and use of new technologies, emphasizing how they improve diagnosis and treatments, reduce appointment times and limit cost increases.

New Media Strategies To reinforce medical practices and local healthcare businesses’ increasing use of new technologies, they should consider creating a video series for posting to their Websites and social media that explains each of these new technologies to alleviate any patient fears. Testimonials videos could also be produced of patients relating their experiences with these new technologies and the benefits of their use. With consumers/patients’ rapid and increasing use of mobile and tablet healthcare apps, local healthcare businesses and institutions should seriously consider having a custom app created for themselves, especially to attract younger patients.