Munich Re s Economic Outlook 2024 Munich Re

Summt Ascent Report Serous Proft Spke durng Frst Half of 2019

Munich r e-insurance group

Introducing group companies, branches, and subsidiaries around the world.

American Alternative Insurance Corporation (AAIC)
American Digital Title Insurance Company
American Modern Insurance Group (AMIG)
Bridgeway insurance company
Digital Partners
ERGO Group
GREAT LAKES INSURANCE SE
HS B-Heartford Steam Boiler Insurance Company
HSB Applied Technology Solutions
HSB Canada
HSB UK / Ireland
Globes John Westlap
MEAG
Munich r e-insurance group
Munich r e-insurance Asi a-Pacific life insurance (Apac)
Munich r e-insurance Asi a-Pacific regional no n-life insurance (Apac)
Munich r e-insurance automation solutions
Munich r e-insurance Beijing Branch
Munich r e-insurance Canada Life
Munich r e-insurance Canada No n-life insurance
Munich r e-insurance foundation
Munich r e-insurance France
Munich r e-insurance company
Munich r e-insurance
Munich r e-insurance Hong Kong branch
Munich r e-insurance Indian branch
Munich r e-insurance investment partner
Munich r e-insurance Italy --Münchener Rück Servizi Tecnici S. R. L.
Munich r e-insurance Japan branch
Munich r e-insurance Korean branch
Munich r e-insurance Taipei Liaison Office
Munich r e-insurance Thai contact office
Munich r e-insurance American branch
Munich r e-insurance Malaysian branch
Munich r e-insurance Malta branch
Munich r e-insurance company
Munich r e-insurance service
Munich r e-insurance office for Shanghai
Munich r e-insurance Singapore branch
Munich r e-insurance specialty
Munich R e-Health Insurance Specialt y-GM, Ireland
Munich r e-insurance specialt y-GM, UK
Munich r e-insurance specialt y-GM, syndicate
Munich R e-Insurance Specialt y-NA, Canada Insurance Program
Munich r e-insurance company (Spain)
Munich r e-insurance underwriting agency (DIFC) Limited
Munich r e-insurance British life insurance branch
Munich r e-insurance America (USA)
Munich r e-insurance ventures
Munich Reinshearance Company of Africa Limited (MROA)
Munich Reinshearance Company of Australesia
Munich Holdings of Australace (MHA)
New r e-insurance company
Temple insurance company
Princeton Excess & Saulus Rhine Insurance Company (Peslic)

economy Strict (geopolitical) politics, weak growth, lower inflation rate, start of monetary easing 2024 economic outlook 4. 5 minutes read Published on February 02, 2024 © Primeimages / Getty Images

properties.trackTitle

Specialist
Solution
Share this page Close

Politics and policies form a world economy of 2024. Geopolitical situations are still strict, and actual dispute and serious risk scenarios have caused uncertainty to companies and economy as a whole. In a narrower range, economic policies and central banks will continue to attract attention, and will play a decisive role for both economic outlook and financial markets. In 2024, a record number of elections will be held, led by the US presidential election in November. The direct impact of these elections on the macro economy is expected to be limited, but the results will affect the next few years.

The world economy in 2024 will be relatively weak this year. Compared to the previous year, which exceeded expectations, the growth rate of the global economy could fall to around 2. 2%(2. 7%in 2023). Emerging nations are more likely to lead to growth, and the growth rate of China and many other Asian countries has reached 4-5%, and more powerful growth is expected in India. Nevertheless, it is expected that most of these economic growth will be considerably weaker than the 10 years before the pandemic.

High prices and tight monetary policies will weaken economic activity, and the growth dynamics of developed countries will weaken. In the United States, the economic growth rate is likely to decrease to about 1. 4%after receiving a surprisingly good data last year. In the euro area, the growth rate in 2024 will be at a very low level (about 0. 5 %) as the same as the previous year.

It is expected that price rise pressure will decrease further due to record high inflation and larg e-scale monetary tightening in each economic zone. Nevertheless, the annual inflation rate in 2024 will surpass the target value of the central bank in many developed countries.

Economic outlook for selected major economies

The key findings of the Economic Outlook 2024 produced by Munich Re Economic Research:

Despite multiple headwinds, economic growth in 2023 exceeded expectations. In developed countries, strong labor markets and powerful wages were the center of surprise growth, especially in the United States. In contrast, the inflation rate has dropped almost as expected, but still exceeds the normal standard.
The preceding indicators suggest that the growth in the next few months will be quite weak. In the developed countries as a whole, the effects of hig h-stop inflation and high interest rates suppress households and corporate economic activities. In the latter half of 2024, the situation has improved, and it may return to a strong growth. Politics and policies form a world economy of 2024. Geopolitical situations are still strict, and actual dispute and serious risk scenarios have caused uncertainty to companies and economy as a whole. In a narrower range, economic policies and central banks will continue to attract attention, and will play a decisive role for both economic outlook and financial markets. In 2024, a record number of elections will be held, led by the US presidential election in November. The direct impact of these elections on the macro economy is expected to be limited, but the results will affect the next few years.
The world economy in 2024 will be relatively weak this year. Compared to the previous year, which exceeded expectations, the growth rate of the global economy could fall to around 2. 2%(2. 7%in 2023). Emerging nations are more likely to lead to growth, and the growth rate of China and many other Asian countries has reached 4-5%, and more powerful growth is expected in India. Nevertheless, it is expected that most of these economic growth will be considerably weaker than the 10 years before the pandemic.
High prices and tight monetary policies will weaken economic activity, and the growth dynamics of developed countries will weaken. In the United States, the economic growth rate is likely to decrease to about 1. 4%after receiving a surprisingly good data last year. In the euro area, the growth rate in 2024 will be at a very low level (about 0. 5 %) as the same as the previous year.
It is expected that price rise pressure will decrease further due to record high inflation and larg e-scale monetary tightening in each economic zone. Nevertheless, the annual inflation rate in 2024 will surpass the target value of the central bank in many developed countries.
Despite multiple headwinds, economic growth in 2023 exceeded expectations. In developed countries, strong labor markets and powerful wages were the center of surprise growth, especially in the United States. In contrast, the inflation rate has declined almost as expected, but still exceeds the normal standard.
The preceding indicators suggest that the growth in the next few months will be quite weak. In the developed countries as a whole, the effects of hig h-stop inflation and high interest rates suppress households and corporate economic activities. In the latter half of 2024, the situation has improved, and it may return to a strong growth. Politics and policies form a world economy of 2024. Geopolitical situations are still strict, and actual dispute and serious risk scenarios have caused uncertainty to companies and economy as a whole. In a narrower range, economic policies and central banks will continue to attract attention, and will play a decisive role for both economic outlook and financial markets. In 2024, a record number of elections will be held, led by the US presidential election in November. The direct impact of these elections on the macro economy is expected to be limited, but the results will affect the next few years.
The world economy in 2024 will be relatively weak this year. Compared to the previous year, which exceeded expectations, the growth rate of the global economy could fall to around 2. 2%(2. 7%in 2023). Emerging nations are more likely to lead to growth, and the growth rate of China and many other Asian countries has reached 4-5%, and more powerful growth is expected in India. Nevertheless, it is expected that most of these economic growth will be considerably weaker than the 10 years before the pandemic.
High prices and tight monetary policies will weaken economic activity, and the growth dynamics of developed countries will weaken. In the United States, the economic growth rate is likely to decrease to about 1. 4%after receiving a surprisingly good data last year. In the euro area, the growth rate in 2024 will be at a very low level (about 0. 5 %) as the same as the previous year.

Costs of Caring

America’s Hospitals and Health Systems Continue to Face Escalating Operational Costs and Economic Pressures as They Care for Patients and Communities

Introduction

Despite multiple headwinds, economic growth in 2023 exceeded expectations. In developed countries, strong labor markets and powerful wages were the center of surprise growth, especially in the United States. In contrast, the inflation rate has dropped almost as expected, but still exceeds the normal standard.

The preceding indicators suggest that the growth in the next few months will be quite weak. In the whole developed country, the effects of hig h-stop inflation and high interest rates have suppressed households and corporate economic activities. In the latter half of 2024, the situation has improved, and it may return to a strong growth.

Global growth will be driven primarily by emerging markets (as in 2023), but emerging economies are also expected to grow at a much weaker pace than in the decade leading up to the pandemic. The recovery in global trade is expected to be weak, hampered by weak investment spending, trade disputes, and geoeconomic fragmentation.

Risks to the growth outlook are tilted to the downside. Geopolitics remains a key risk factor for the global economy. The terrorist attacks on Israel and the resulting war between Israel and Hamas have highlighted the risk of escalation in the Middle East, while the attack on a ship in the Red Sea has highlighted the risk of disruption to global supply chains. Russia's war of aggression in Ukraine continues, and tensions between the United States and China remain elevated.

Further downside risks include a recession in advanced economies due to delayed monetary tightening in the past (with past interest rate hikes having a stronger impact on the economy than expected), as well as a deepening real estate crisis in China.

1. Costs of Providing Essential Services

Inflation in 2023 has declined due to lower energy prices and more moderate increases in food, non-energy goods, and services prices. However, inflation pressures remain high and widespread, reflecting delayed pass-through of input cost increases and continuing wage inflation. Thus, while inflation is expected to weaken further in the coming months, annual inflation in 2024 is likely to exceed central bank targets in many economies.

In an environment of weak growth and further declining inflation, major central banks are expected to start lowering policy rates. However, current financial market expectations may be too optimistic.

Inflation risks remain tilted to the upside but have been balancing in recent months. Inflation would rise more than expected if labor markets in advanced economies tightened more than expected, consumer spending strengthened, energy prices rose, or the cost of transporting goods (due to global shipping disruptions) increased. This could trigger further interest rate hikes, adversely affecting economic growth. However, inflation could also be lower than expected, especially if the recession is mild and aggregate demand weakens. In that case, central banks are likely to cut interest rates sooner than expected.

In 2024, a globally recorded number of elections will be held, led by the November US presidential election. Although the direct impact of these elections on the macro economy is expected to be limited, the results may affect the prospects for the next few years, such as trade and climate policy. 。 This happened at a time when the world's and China's geopolitical conflicts and geographical and economic divisions were focused on the fact that the world's politics and economic orders were about to change.

2. Hospital Administrative Expenses

Hospitals and medical systems have been at the forefront of major changes, while being at the crossroads of increasing demand for highly acute care and growing financial concerns. Sustainable labor shortage, serious cracks in supply chains of pharmaceuticals and consumables, and hig h-level inflation have spurred the cost of hospitals that care for patients all year round (see Figure 1). At the same time, hospital costs are also due to poor redemption by government payment agencies and increasing management burden by inappropriate folk medical insurers.

In combination with these issues, a financially uncertain environment has been created in which many hospitals and medical systems are operated with little room. According to recent data, the finances of some hospitals and medical systems have been moderately stable from the historic low level in 2022, but the hospital field meets medical demand and promising new technologies and intervention measures. It is still far from investing in and needed to prepare for the next medical crisis.

In 2022, more than half of the hospitals were the financial and historical difficulty of management, so many hospitals were desperate to combine most of 2023. 1, from 2021 to 2023, the inflation rate of the entire economy increased by 12. 4%, which was more than twice the redemption of media care for inpatient care (see Figure 2).

According to data from Strata Decision Technology, which provides data and clou d-based financial plans, decisio n-making support, and performance analysis solutions, the number of cash on hand in hospitals and medical systems has decreased by 28. 3%since 2022. 。 2 In 2024, a global record of elections will be held, led by the November US presidential election. Although the direct impact of these elections on the macro economy is expected to be limited, the results may affect the prospects for the next few years, such as trade and climate policy. 。 This happened at a time when the world's and China's geopolitical conflicts and geographical and economic divisions were focused on the fact that the world's politics and economic orders were about to change.

Other expenses

3. Hospital Drug Expenses

According to data from Strata Decision Technology, which provides data and clou d-based financial plans, decisio n-making support, and performance analysis solutions, the number of cash on hand in hospitals and medical systems has decreased by 28. 3%since 2022. 。 In 22024, a globally recorded number of elections will be held, led by the November US presidential election. Although the direct impact of these elections on the macro economy is expected to be limited, the results may affect the prospects for the next few years, such as trade and climate policy. 。 This happened at a time when the world's and China's geopolitical conflicts and geographical and economic divisions were focused on the fact that the world's politics and economic orders were about to change.

4. Hospital Supply Costs

In 2022, more than half of the hospitals were financially difficult and difficult years in deficit, so many hospitals were desperate to match most of 2023. 1, from 2021 to 2023, the inflation rate of the entire economy increased by 12. 4%, which was more than twice the redemption of media care for inpatient care (see Figure 2).

Table 1. Medical Device and Equipment Market Prices

Diverting your funds to maintain access to medical care requires trad e-off, and many hospitals and medical systems have restricted investing in infrastructure, new medical technology and equipment, and other clinical needs. 。 3, 4, for example, according to data from Strata Decision Technology, the average number of capital investment in medical devices and infrastructure increased by 7. 1%in 2023 after relatively flat. The restrictions and burdens of planting of the plant are a serious issue for hospitals and medical systems, but the fact that the necessary capital investment is not possible is one of the rating of bond rating agencies, some hospitals and medical treatment. The system is becoming more difficult to borrow money. 5 Continuous medical fees have become more serious due to recent crises like cyber attacks in recent health care, and increased operating costs has created a sustainable financial environment. 6) Although such an issue alone could fall into dysfunction, hospitals and medical systems increase the number of ancompen center care due to continuous r e-decisions of Medicade, and regulations to increase the work burden. He has been facing further threats, such as changes, cyber attacks that threaten medical infrastructure, and bills that can further reduce med care payments to hospitals.

5. Hospital Labor Costs

This report is a snapshot showing the current cost of the hospital and the medical system and how they have the effects of patients and the ability to care for the patient and the local community. In order to maintain access to medical care, diverting your funds in need of trading off, many hospitals and medical systems invest in infrastructure, new medical technology and equipment, and other clinical needs. It has been restricted. 3, 4, for example, according to data from Strata Decision Technology, the average number of capital investment in medical devices and infrastructure increased by 7. 1%in 2023 after relatively flat. The restrictions and burdens of planting of the plant are a serious issue for hospitals and medical systems, but the fact that the necessary capital investment is not possible is one of the rating of bond rating agencies, some hospitals and medical treatment. The system is becoming more difficult to borrow money. 5 Continuous medical fees have become even more serious due to recent crises such as cyber attacks in recent healthcare, and increased operating costs has created a sustainable financial environment. 6) Although such an issue alone could fall into dysfunction, hospitals and medical systems increase the number of ancompen center care due to continuous r e-decisions of Medicade, and regulations to increase the work burden. He has been facing further threats, such as changes, cyber attacks that threaten medical infrastructure, and bills that can further reduce med care payments to hospitals.

This report is a snapshot showing the current cost of the hospital and the medical system and how they have the effects of patients and the ability to care for the patient and the local community. Diverting your funds to maintain access to medical care requires trad e-off, and many hospitals and medical systems have restricted investing in infrastructure, new medical technology and equipment, and other clinical needs. 。 3, 4, for example, according to data from Strata Decision Technology, the average number of capital investment in medical devices and infrastructure increased by 7. 1%in 2023 after relatively flat. The restrictions and burdens of planting of the plant are a serious issue for hospitals and medical systems, but the fact that the necessary capital investment is not possible is one of the rating of bond rating agencies, some hospitals and medical treatment. The system is becoming more difficult to borrow money. 5 Continuous medical fees have become more serious due to recent crises like cyber attacks in recent health care, and increased operating costs has created a sustainable financial environment. 6) Although such an issue alone could fall into dysfunction, hospitals and medical systems increase the number of ancompen center care due to continuous r e-decisions of Medicade, and regulations to increase the work burden. He has been facing further threats, such as changes, cyber attacks that threaten medical infrastructure, and bills that can further reduce med care payments to hospitals.

This report is a snapshot showing the current cost of the hospital and the medical system and how they have the effects of patients and the ability to care for the patient and the local community.

Hospitals often play a critical, and sometimes only, role in providing access to essential health services for the health and well-being of their communities, such as emergency and behavioral health care. Moreover, these services are often not offered by other health care providers. In 2022, the most recent year for which data is available, hospitals admitted approximately 137 million patients to emergency departments and performed more than 3. 5 million births. 8 Many of these essential services are very resource-intensive and costly to provide. Further complicating the issue are demographic trends, such as an aging population, and clinical factors, such as increased patient acuity. This has led to a steady increase in the proportion of hospitalizations used by more clinically complex patients covered by Medicare and Medicaid. 9 Not only are inpatient services expensive, but public health reimbursements are well below the costs. In fact, underpayments from Medicare and Medicaid will total nearly $130 billion in 2022, with Medicare paying just 82 cents for every dollar hospitals spend on patient care, resulting in a shortfall of nearly $100 billion. 10 Worryingly, the cumulative shortfall in the second half of the past decade is more than $5 trillion, a nearly 40% increase over the first half even after adjusting for inflation (see Figure 3).

A Look Ahead to the Rest of 2024

But reimbursement challenges go beyond Medicare and Medicaid. Reimbursements for some services are consistently below cost across all payer types. For example, according to data from Strata Decision Technology, payments for inpatient behavioral health services in 2023 are 34. 3% below cost on average across all payers (see Figure 4).

This is particularly concerning given that utilization of behavioral health services has increased in recent years.
In outpatient settings, average payments for costly burn and wound services are 42. 9% below costs across all payers (see Figure 5). These shortfalls are particularly severe for government payers like Medicare. For example, Medicare’s average margin for behavioral health services wa s-38. 9% in 2023.
Taken together, these data highlight the challenges hospitals and health systems face in providing the essential services their communities need. Financial challenges may be even more severe for rural hospitals, especially.
Some profit medical insurers will increase hospital costs and delay care for patients

Conclusion

Inappropriate practices by specific folk medical insurance, including Medicare Advantage (MA) and Medicade Managed Care Plan, have increased hospital management costs significantly. In addition to the premiums that rose twice as much as the hospital price in 2023, the profitable medical insurers are excessively burdened to the hospital due to time and effortful comparations, such as automatic rejection and severe prior approval requirements. (See Fig. 6). 11

McKinsey's 2021 survey states that hospitals are estimated to spend $ 10 billion in response to pr e-approval of insurance companies. It turned out that it costs less than $ 20 billion annually, and more than half of it has been wasted on the request to be paid at the time of submission. The denial of the 13 commercial MA plans increased to 55. 7 % in 2023. 14 Notable is that many of these denials are ultimately overturned, and the Ministry of Health and Welfare (OIG), the Ministry of Health and Welfare (OIG), which was later overturned 75 % of medical refusal. I am. (15) It is especially concerned that such a medical refusal is often performed on medical necessary medical care, which can be directly harmful to the patient. In fact, according to recent HHS OIG reports, almost one out of 5 cases of MA refusal to medical treatment satisfies the medical insurance coverage of medical care, and if it is paid by Medicare Fore For Service, it will be refused medical treatment. It means that it was paid without being done. 16 Even if the denial is ultimately overturned, the hospital will be burdensome and will not be paid for the resourc e-required process. Even worse, in 2023, the MA plan paid to the hospital was 90 % less than 90 % of the Medicare fee, despite the larger taxpayer than the conventional med care. Despite the fact that the cost of 17, 18 is declining, the deterioration of overloading in management has been a huge burden for the hospital. Some profit medical insurers will increase hospital costs and delay care for patients

Inappropriate practices by specific folk medical insurance, including Medicare Advantage (MA) and Medicade Managed Care Plan, have increased hospital management costs significantly. In addition to the premiums that rose twice as much as the hospital price in 2023, the profitable medical insurers are excessively burdened to the hospital due to time and effortful comparations, such as automatic rejection and severe prior approval requirements. (See Fig. 6). 11
McKinsey's 2021 survey states that hospitals are estimated to spend $ 10 billion in response to pr e-approval of insurance companies. It turned out that it costs less than $ 20 billion annually, and more than half of it has been wasted on the request to be paid at the time of submission. The denial of the 13 commercial MA plans increased to 55. 7 % in 2023. 14 Notable is that many of these denials are ultimately overturned, and the Ministry of Health and Welfare (OIG), the Ministry of Health and Welfare (OIG), which was later overturned 75 % of medical refusal. I am. (15) It is especially concerned that such a medical refusal is often performed on medical necessary medical care, which can be directly harmful to the patient. In fact, according to recent HHS OIG reports, almost one out of 5 cases of MA refusal to medical treatment satisfies the medical insurance coverage of medical care, and if it is paid by Medicare Fore For Service, it will be refused medical treatment. It means that it was paid without being done. 16 Even if the denial is ultimately overturned, the hospital will be burdensome and will not be paid for the resourc e-required process. Even worse, in 2023, the MA plan paid to the hospital was 90 % less than 90 % of the Medicare fee, despite the larger taxpayer than the conventional med care. Despite the fact that the cost of 17, 18 is declining, the deterioration of overloading in management has been a huge burden for the hospital. Some profit medical insurers will increase hospital costs and delay care for patients
Inappropriate practices by specific folk medical insurance, including Medicare Advantage (MA) and Medicade Managed Care Plan, have increased hospital management costs significantly. In addition to the premiums that rose twice as much as the hospital price in 2023, the profitable medical insurers are excessively burdened to the hospital due to time and effortful comparations, such as automatic rejection and severe prior approval requirements. (See Fig. 6). 11
McKinsey's 2021 survey states that hospitals are estimated to spend $ 10 billion in response to pr e-approval of insurance companies. It turned out that it costs less than $ 20 billion annually, and more than half of it has been wasted on the request to be paid at the time of submission. The denial of the 13 commercial MA plans increased to 55. 7 % in 2023. 14 Notable is that many of these denials are ultimately overturned, and the Ministry of Health and Welfare (OIG), the Ministry of Health and Welfare (OIG), which was later overturned 75 % of medical refusal. I am. (15) It is especially concerned that such a medical refusal is often performed on medical necessary medical care, which can be directly harmful to the patient. In fact, according to recent HHS OIG reports, almost one out of 5 cases of MA refusal to medical treatment satisfies the medical insurance coverage of medical care, and if it is paid by Medicare Fore For Service, it will be refused medical treatment. It means that it was paid without being done. 16 Even if the denial is ultimately overturned, the hospital will be burdensome and will not be paid for the resourc e-required process. Even worse, in 2023, the MA plan paid to the hospital was 90 % less than 90 % of the Medicare fee, despite the larger taxpayer than the conventional med care. Despite the fact that the cost of 17, 18 is declining, the deterioration of overloading in management has been a huge burden for the hospital.
While these issues are often felt most acutely by MA and Medicaid managed care plans, they are also true for other private payers, with claim denials increasing by 20. 2% in 2023. Additionally, data from the Vitality Index show that the time it takes private payers to process and pay hospital claims increased by 19. 7% in 2023 from the date of submission. For hospitals and health systems, these practices translate into billions of dollars in lost revenue each year, forcing hospitals to divert funds from patient care and instead focus on seeking payment from private payers. 19 Without further intervention, these trends are expected to continue and worsen. From 2022 to 2031, private health insurance administrative costs alone are projected to account for 7% of total health care spending, with growth expected to exceed hospital care costs. 20

End Notes

Hospitals are also spending more on things that are not direct patient care services but are essential to providing care and keeping them running. For example, costs associated with implementing, maintaining, and upgrading information management systems and overall technology infrastructure, while essential to improving efficiency and quality of care, are typically significant investments.
Furthermore, given the sensitivity of the patient data contained in these systems, hospitals are increasingly being targeted by cyberattacks. As a result, the costs of defending against such attacks and protecting patient data are steadily increasing. 21 Healthcare data breaches are by far the most costly of any sector. 22 As cyberattacks and data breaches in healthcare grow and regulators demand stronger protections, hospitals and health systems are increasingly looking to invest in cybersecurity. 23 Protecting against cyberattacks and other vulnerabilities is critical to patient care, but increasingly costly. According to data from Lightcast, hospitals spent nearly $30 billion on indemnity and medical liability insurance in 2022.
A persistent cost pressure for hospitals and health systems is the rapid and sustained increase in drug costs. Hospitals are expected to spend $115 billion on drugs in 2023 alone. This increase is driven in part by pharmaceutical companies’ decisions to significantly increase prices on existing drugs. However, 2023 also saw a continuation of a long-standing trend of pharmaceutical companies introducing new drugs at record prices. In 2023, the median annual list price for a new drug was $300, 000, up 35% from the previous year (see Figure 7). 24 According to a recent report by the HHS Assistant Secretary for Planning and Evaluation (ASPE), from 2022 to 2023, the prices of nearly 2, 000 drugs will increase faster than the general rate of inflation, with an average increase of 15. 2%. 25
While rising drug prices alone are a challenge for hospitals and health systems, the fact that many of these same drugs are in short supply exacerbates the problem. In fact, 2023 saw the most drug shortages in the past decade, with an average of 301 drug shortages per quarter, a 13. 0% increase from the previous year (see Figure 8). According to data from the American Society of Health-System Pharmacists (ASHP), these drug shortages added as much as 20% to hospital drug budgets. Such drug shortages can occur for a variety of reasons, including disruptions to global supply chains, shortages of raw materials, and pharmaceutical companies' decisions that lack incentives to produce generic drugs with lower profit margins. 26 According to an ASHP survey, more than 99% of hospital and health system pharmacists will experience drug shortages in 2023, with 85% of respondents describing the severity of the drug shortage as a "major impact" or "moderate impact."27 The majority of the drugs in shortages are generic, an estimated 83%, but many of these drugs are also used to treat cancer and autoimmune diseases. 28
Hospital pharmacy staff has limited options for surviving drug shortages. Purchase pharmaceuticals in a way other than conventional suppliers and group purchasing agreements, obtain a different concentration and packag e-sized pharmaceuticals, and purchase the same clinical adaptation drugs. However, all three options mean that hospitals pay high prices to get drugs. According to ASPE's report, the price of shortage drugs rose up to 16. 6%, often more than three times the price increase in alternative drugs. 29 The cost of a shortage of pharmaceuticals will manage new tasks of overtime work of staff required to search, procure, and administer alternatives, multiple dispensing automation systems and electronic medical records (EHR). It increases further due to overtime work required to provide training to ensure the safety of medications using alternative therapies. 30
In order for hospitals to provide hig h-quality medical care to patients, appropriate and latest medical equipment, medical equipment, and equipment are required. This includes artificial joints used for treatment of patients such as arthritis, robot surgical devices used for laparoscopic surgery, and complex image diagnostics used for clinical diagnosis. Most of these items are expensive to acquire and maintain, and are more and more unstable global supply chains. According to Strata Decision Technology data, the medical supply costs, which account for about 10. 5%of the average hospital budget, up to $ 146. 9 billion in 2023, an increase of $ 6. 6 billion compared to 2022. As technology and science are constantly evolving, hospitals need to buy new supply, equipment, and devices that meet clinical medical standards and guarantee hig h-quality medical care. Hospital pharmacy staff has limited options for surviving drug shortages. Purchase pharmaceuticals in a way other than conventional suppliers and group purchasing agreements, obtain a different concentration and packag e-sized pharmaceuticals, and purchase the same clinical adaptation drugs. However, all three options mean that hospitals pay high prices to get drugs. According to ASPE's report, the price of shortage drugs rose up to 16. 6%, often more than three times the price increase in alternative drugs. 29 The cost of a shortage of pharmaceuticals will manage new tasks of overtime work of staff required to search, procure, and administer alternatives, multiple dispensing automation systems and electronic medical records (EHR). It increases further due to overtime work required to provide training to ensure the safety of medications using alternative therapies. 30
In order for hospitals to provide hig h-quality medical care to patients, appropriate and latest medical equipment, medical equipment, and equipment are required. This includes artificial joints used for treatment of patients such as arthritis, robot surgical devices used for laparoscopic surgery, and complex image diagnostics used for clinical diagnosis. Most of these items are expensive to acquire and maintain, and are more and more unstable global supply chains. According to Strata Decision Technology data, the medical supply costs, which account for about 10. 5%of the average hospital budget, up to $ 146. 9 billion in 2023, an increase of $ 6. 6 billion compared to 2022. As technology and science are constantly evolving, hospitals need to buy new supply, equipment, and devices that meet clinical medical standards and guarantee hig h-quality medical care. Hospital pharmacy staff has limited options for surviving drug shortages. Purchase pharmaceuticals in a way other than conventional suppliers and group purchasing agreements, obtain a different concentration and packag e-sized pharmaceuticals, and purchase the same clinical adaptation drugs. However, all three options mean that hospitals pay high prices to get drugs. According to ASPE's report, the price of shortage drugs rose up to 16. 6%, often more than three times the price increase in alternative drugs. 29 The cost of a shortage of pharmaceuticals will manage new tasks of overtime work of staff required to search, procure, and administer alternatives, multiple dispensing automation systems and electronic medical records (EHR). It increases further due to overtime work required to provide training to ensure the safety of medications using alternative therapies. 30
In order for hospitals to provide hig h-quality medical care to patients, appropriate and latest medical equipment, medical equipment, and equipment are required. This includes artificial joints used for treatment of patients such as arthritis, robot surgical devices used for laparoscopic surgery, and complex image diagnostics used for clinical diagnosis. Most of these items are expensive to acquire and maintain, and are more and more unstable global supply chains. According to Strata Decision Technology data, the medical supply costs, which account for about 10. 5%of the average hospital budget, up to $ 146. 9 billion in 2023, an increase of $ 6. 6 billion compared to 2022. As technology and science are constantly evolving, hospitals need to buy new supply, equipment, and devices that meet clinical medical standards and guarantee hig h-quality medical care.
Major equipment and upgrades to the equipment incur large upfront costs (Table 1). For example, advanced cardiac magnetic resonance imaging (cMRI) technology has given physicians a better understanding of cardiac pathology, leading to improved diagnoses, but this costs an average of $3. 2 million. Hospitals with high demand for cardiology services may need to purchase multiple cMRI machines. Additional costs for ongoing maintenance, upgrades, and staff training also add to the total cost hospitals must incur to provide quality care to patients.
*Larger than handheld devices, but still portable. May have more advanced capabilities.~Note: Market prices for medical equipment and instruments provided by ECRI, an independent nonprofit corporation that provides a wide range of services related to medical technology.
Hospital labor costs will increase by more than $42. 5 billion between 2021 and 2023, reaching a total of $839 billion, accounting for nearly 60% of the average hospital's expenses. Hospitals continue to turn to expensive contract labor to fill gaps and maintain access to care, spending approximately $51. 1 billion on contract staff in 2023.
Expenses on contract labor, while slowing from the height of the pandemic, remain high, adding to the financial challenges facing hospitals and health systems. Small hospitals, especially in rural areas, may have difficulty retaining staff due to their small local workforce. Hospital labor costs are also highly susceptible to rapid fluctuations in labor supply and demand. Growth in wages and benefits for hospital staff has significantly outpaced overall economy inflation over the past decade (see Figure 9).~However, serious labor shortages persist, especially as clinician burnout worsens. There has been an unprecedented exodus of health care workers in recent years as the pandemic accelerated employee burnout, exacerbated by administrative burdens for private insurers and increased violence against hospital employees. 31 According to McKinsey data, the number of healthcare worker resignations per month increased by 50% between 2020 and 2023. 32 Additionally, hospitals are having to contend with record high turnover rates, creating additional expenses for hospitals looking to recruit new workers. 33
As a result, hospitals and medical systems make more investments to attract and maintain human resources. According to Lightcast data, advertising wages in all hospitals have risen 10. 1%in 2023. For the next 10 years, the gap between healthcare professionals will increase, and labor costs are likely to be a problem for hospitals.
Furthermore, given the sensitivity of the patient data contained in these systems, hospitals are increasingly being targeted by cyberattacks. As a result, the costs of defending against such attacks and protecting patient data are steadily increasing. 21 Healthcare data breaches are by far the most costly of any sector. 22 As cyberattacks and data breaches in healthcare grow and regulators demand stronger protections, hospitals and health systems are increasingly looking to invest in cybersecurity. 23 Protecting against cyberattacks and other vulnerabilities is critical to patient care, but increasingly costly. According to data from Lightcast, hospitals spent nearly $30 billion on indemnity and medical liability insurance in 2022.
R e-enrollment due to Medicade's r e-decision: More than 19 million Medicade subscribers have withdrawn by 2023. 37 Despite being partially offset by the possibility of joining a recorded marketplace and the possibility of joining the employe r-bearing insurance, as a result, no n-compensated medical expenses have been steadily increased through 2023, and the Medicade is particularly expanded. It is highly likely that it will last until 2024 in unpolished states. 38
Possibility of legislative measures to reduce medical medical payments: Congress is considering several bills that impose additional payments to services provided by hospitals at hospitals. These proposals are called "situations neutral", which worsen hospital financial issues and threaten the patient's high quality medical care. As a result, hospitals and medical systems make more investments to attract and maintain human resources. According to Lightcast data, advertising wages in all hospitals have risen 10. 1%in 2023. For the next 10 years, the gap between healthcare professionals will increase, and labor costs are likely to be a problem for hospitals.
2024 is the first year of the recent emergency emergency, but hospitals and medical systems continue to face many issues. The rating company depicts a dark outlook for the 2024 hospital sector. According to 34 S & amp; P, the negative outlook for no n-profit hospitals has been the highest in the past 10 years and has affected 24 % of the sector. Like 35, Fitch reports that the ratio of downgrade and upgrade is 3: 1, which is surprisingly close to the ratio of the financial crisis in 2008, and this year is the year of "Success or Failure", especially annual business. He highlighted the difficulties of this sector, mainly in small hospitals with less than $ 500 million. 36 hospitals and medical systems are expected to continue to face the cost of labor costs, pharmaceuticals, and medical consumables, but the following headwinds must be considered:
R e-enrollment due to Medicade's r e-decision: More than 19 million Medicade subscribers have withdrawn by 2023. 37 Despite being partially offset by the possibility of joining a recorded marketplace and the possibility of joining the employe r-bearing insurance, as a result, no n-compensated medical expenses have been steadily increased through 2023, and the Medicade is particularly expanded. It is highly likely that it will last until 2024 in unpolished states. 38
Possibility of legislative measures to reduce medical medical payments: Congress is considering several bills that impose additional payments to services provided by hospitals at hospitals. These proposals are called "situations neutral", which worsen hospital financial issues and threaten the patient's high quality medical care. As a result, hospitals and medical systems make more investments to attract and maintain human resources. According to Lightcast data, advertising wages in all hospitals have risen 10. 1%in 2023. For the next 10 years, the gap between healthcare professionals will increase, and labor costs are likely to be a problem for hospitals.~2024 is the first year of the recent emergency emergency, but hospitals and medical systems continue to face many issues. The rating company depicts a dark outlook for the 2024 hospital sector. According to 34 S & amp; P, the negative outlook for no n-profit hospitals has been the highest in the past 10 years and has affected 24 % of the sector. Like 35, Fitch reports that the ratio of downgrade and upgrade is 3: 1, which is surprisingly close to the ratio of the financial crisis in 2008, and this year is the year of "Success or Failure", especially annual business. He highlighted the difficulties of this sector, mainly in small hospitals with less than $ 500 million. 36 hospitals and medical systems are expected to continue to face the cost of labor costs, pharmaceuticals, and medical consumables, but the following headwinds must be considered:
R e-enrollment due to Medicade's r e-decision: More than 19 million Medicade subscribers have withdrawn by 2023. 37 Despite being partially offset by the possibility of joining a recorded marketplace and the possibility of joining the employe r-bearing insurance, as a result, no n-compensated medical expenses have been steadily increased through 2023, and the Medicade is particularly expanded. It is highly likely that it will last until 2024 in unpolished states. 38
Possibility of legislative measures to reduce medical medical payments: Congress is considering several bills that impose additional payments to services provided by hospitals at hospitals. These proposals are called "situations neutral", which worsen hospital financial issues and threaten the patient's high quality medical care.
Cybersecurity risks impact provider and patient care: The cyberattack on Change Healthcare in February 2024 highlighted the significant impact such incidents can have on patient care and hospital operations. The disruption caused by this cyberattack significantly disrupted revenue cycle management, pharmacy services, select medical technologies, clinical approvals, and more for multiple health systems, and served as an example of how attacks can ripple throughout the health sector if a business that provides numerous mission-critical services is compromised. 39
Continuing and escalating hospital violence: In recent years, there has been a significant increase in violence against health care workers. 40 To address this issue, hospitals are investing heavily in violence prevention and preparedness efforts to support their employees.
American hospitals and health systems are dedicated to providing quality care 24/7 to all patients, in every region of the country. While their commitment to care and health promotion never wavers, hospitals continue to face significant challenges that make it difficult to ensure care at all times.
AHA will continue to urge Congress and the Administration to support policies that ensure hospitals and health systems have the resources they need to continue providing 24/7 care to all patients and communities. This includes:
Rejecting Medicare and Medicaid cuts to hospital care, including harmful site-neutral proposals and future cuts to Medicaid proportional contribution hospitals.
Supporting and strengthening the health care workforce.
Protecting the 340B drug pricing system from harmful changes and limiting drug cost growth.
Taking action to hold for-profit insurers accountable for actions that delay, deny, or disrupt care.
Increasing support for strengthening cybersecurity across hospitals and health systems.~www. kaufmanhall. com/news/2022-worst-financial-year-hospitals-and-health-systems-start-pandemic www. syntellis. com/sites/default/files/2023-11/aha_q2_2023_v2. pdf fortune. com/well/2024/01/11/rural-hospitals-are-caught-in-an-aging-infrastructure- conundrum/ www. aha. org/guidesreports/2023-04-19-essential-role-financial-reserves-not-profit-healthcare www. modernhealthcare. com/finance/hospital-2023-credit-rating-downgrade-fitch-ratings-sp-global-moodys www. aha. org/cybersecurity/change-healthcare-cyberattack-updates
www. aha. org/news/blog/2023-09-20-unwise-dsh-cuts-combined-rise-uncompensated-care-due-medicaid-redeterminations-coverage-losses-further
2022 年年次調査データの AHA 分析。
www. trillianthealth. com/insights/the-compass/the-total-available-market-of-commercially-insured-patients-is-shrinking
www. aha. org/news/headline/2024-01-10-aha-infographic-medicare-underpayments-hospitals-nearly-100-billion-2022#：
:text=AHA%20infographic% 3A%20Medicare%20underpayments%20to%20hospitals%20nearly%20%24100%20billion%20in%202022,-Jan%2010%2C%202024& amp; text=Medicare%20 paid%20hospitals%20a%20record, negative%20Medicare%20margins%20that%20year.
www. wsj. com/health/healthcare/health-insurance-cost-increase-5b35ead7
www. mckinsey. com/
In order for hospitals to provide hig h-quality medical care to patients, appropriate and latest medical equipment, medical equipment, and equipment are required. This includes artificial joints used for treatment of patients such as arthritis, robot surgical devices used for laparoscopic surgery, and complex image diagnostics used for clinical diagnosis. Most of these items are expensive to acquire and maintain, and are more and more unstable global supply chains. According to Strata Decision Technology data, the medical supply costs, which account for about 10. 5%of the average hospital budget, up to $ 146. 9 billion in 2023, an increase of $ 6. 6 billion compared to 2022. As technology and science are constantly evolving, hospitals need to buy new supply, equipment, and devices that meet clinical medical standards and guarantee hig h-quality medical care. Hospital pharmacy staff has limited options for surviving drug shortages. Purchase pharmaceuticals in a way other than conventional suppliers and group purchasing agreements, obtain a different concentration and packag e-sized pharmaceuticals, and purchase the same clinical adaptation drugs. However, all three options mean that hospitals pay high prices to get drugs. According to ASPE's report, the price of shortage drugs rose up to 16. 6%, often more than three times the price increase in alternative drugs. 29 The cost of a shortage of pharmaceuticals will manage new tasks of overtime work of staff required to search, procure, and administer alternatives, multiple dispensing automation systems and electronic medical records (EHR). It increases further due to overtime work required to provide training to ensure the safety of medications using alternative therapies. 30
premierinc. com/newsroom/blog/trend-alert-private-payers-retain-profits-by-refusing or-delaying-legitimate-medical-claims
www. syntellis. com/sites/default/files/2023-11/aha_q2_2023_v2. pdf

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

Volatile loss trends, complex risks: Munich Re to focus on risk-adequate conditions · Munich Re generates profit of €3,m in H1 · Severe thunderstorms and. Munich Re is expecting a net profit of nearly 5 billion EUR ( billion USD) in The insurance income should reach. Looking ahead, Munich Re anticipates continued strong business opportunities and aims to achieve a net result of $5, billion for the financial year.

Play

accepted