Top Risks Facing Healthcare Organizations

The number of U.S. patients whose healthcare data was exposed to a data breach more than doubled, from 37 million to 87 million, from 2022 to 2023. Globally, healthcare organizations averaged 1,463 cyber attacks per week in 2022, up 74 percent from 2021. At the same time, many healthcare providers are adopting advanced technologies such as virtual reality, robotics and artificial intelligence (AI). Although they can be highly effective in helping to control costs, reduce staff burnout and improve training, patient engagement and clinical decision making, these technologies also compound cyber exposure.
Two interrelated risks, workforce shortage and failure to attract or retain top talent, ranked second and third, respectively, in 2023, compared to number one and number five in 2021. Healthcare providers continue to struggle to attract and retain nurses and other health professionals in a wide range of clinical and support roles. As a stopgap measure to address the urgent shortage, which was exacerbated by the COVID-19 pandemic, many employers have been relying on short-term contract workers (so-called travelers) attracted by higher wages. However, according to a recent report, 86 percent of surveyed clinicians who have been on long- and short-term “travel” contracts reported being more willing to explore permanent employment in 2023, with 46 percent indicating they already had plans to return to permanent employment. This is a significantly higher number than in 2022, when only 55 percent reported they were considering the switch to permanent positions.
Additionally, new research on workforce burnout found the prevalence of burnout among U.S. physicians was 63 percent in 2021, compared with 46 percent in 2011. Likewise, nurses report persistently high levels of burnout, due to high nurse-to-patient ratios and excessive administrative tasks, among other reasons. Elevated levels of burnout have caused more nurses to leave the profession, further exacerbating workforce shortages, which in turn adversely affects patient care, increases medical errors and raises safety concerns that could reduce recovery and even survival rates. In Aon’s 2023 Benefits Survey of Hospitals, 89 percent of health systems reported mental health as a major concern.
Rising healthcare costs risk jumped from number eight in 2021 to number five in 2023. Low unemployment means more workers have access to employer-sponsored benefits; however, the cost of those benefits is rising for employers and employees alike. Among all consumers, the average annual cost for healthcare is projected to be $7,221 in 2023, increasing from $6,813 last year. About half of the average person’s healthcare expenses are for inpatient and outpatient hospital services, which the Milliman Medical Index projects will increase 4.2 percent in 2023 due to higher utilization and inflation.
Medical-malpractice-related costs are also significant for healthcare delivery organizations, accounting for about $60 billion (or 2 to 3 percent of total costs), excluding costs incurred through defensive medicine, such as additional tests and treatments, to avoid lawsuits. Healthcare organizations have an imperative to reduce medical errors, which recently ranked as the number three cause of death in the U.S. (behind heart disease and cancer). Given the effect of social and economic inflation on the value of demands and ultimate settlement and judgment amounts, healthcare organizations can face an even higher level of liabilities, despite continued focus on quality and safety.
link