4 Key Trends for Payers and Providers in 2022

The sectors face continued operational pressure as they head into a third year of the pandemic, including a tight labor market and continued shifts in payer mix. eleaguered and exhausted, the health sector marches into a third year of the pandemic. For hospitals, it will mean continued pressure on profit margins as expenses climb due to a host of issues, including more expensive labor as clinical staff is in high demand. Ultimately, price hikes are likely as hospitals try to pass some of these higher costs on.

For payers, it likely means continued shifts in payer mix. Medicaid and Medicare coverage has swelled as policymakers have incentivized coverage as the nation recovers from the worst effects wrought by the pandemic. But as the emergency policies wane, it will likely cause disruption and payer mix fluctuations. And as people continue to put off care, that poses a risk to payers with a member base that is not only sicker but also has more advanced and complex illness.