Upcoming Trade Shows in USA for Health

The health industry in the USA is looking at a stabilizing period of growth as experts expect that government segments will outpace commercial sectors by a considerable margin over the course of the next few years. By 2027, government segments are anticipated to be 65% larger than their commercial counterparts, which reflects broader industry trends influenced by regulatory changes, economic pressures, and evolving payer dynamics. In 2022, the overall profit pools for payers in the healthcare sector reached $60 billion. As the market continues to recover from recent challenges, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for payers is projected to grow at a compound annual growth rate of 5%, reaching $78 billion by 2027. This growth will likely be driven by several key factors, including the recovery of margins in the commercial segment, inflation-driven premium rate increases, and an uptick in managed care participation among the duals population (by that we mean the individuals eligible for both Medicaid and Medicare). However, the health industry in the USA won’t have a direct road to prosperity. Regulatory pressures are expected to compress margins within Medicare Advantage, particularly due to changes in risk adjustment, a decline in the Stars bonus program, and other technical updates. Additionally, the expiration of the public health emergency is likely to result in a decline in Medicaid membership, further impacting payer margins. Increased labor costs and administrative expenses are also expected to weigh on payer EBITDA, with estimates suggesting a reduction of about 60 basis points in 2023. Health systems, in response to these pressures, are likely to seek reimbursement rate increases, potentially adding 350 to 400 basis points to commercial segment rates and 200 to 250 basis points to government segment rates by 2027.