Trump and his impact on the healthcare structured cabling market

Healthcare, specifically the Affordable Care Act (ACA), was a central topic healthcarethroughout the recent U.S. presidential campaigns. Though we can’t say how just yet, Donald Trump’s election will likely bring change to the U.S. healthcare market. Trump campaign promises pointed to repealing and replacing the ACA with something completely different; however, as time goes on, it is expected that at least parts of the ACA will remain.

Over the past several years, the U.S. healthcare industry has been consumerized through initiatives like the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). These initiatives changed the way that physicians are paid from a volume-based system to a value-based system. This has forced providers to reduce the cost of care while improving quality and patient outcomes. These cost reductions and the concern for the quality of patient care is likely to continue, and perhaps become even more important during the Trump administration.

Based on what we have heard thus far, analysts predict the following for health care under Trump’s policies:

  • There will be more of an emphasis on price transparency for medical procedures and other healthcare costs.
  • The Medical Productivity Index* (MPI) is expected to increase by 2% by 2026.
  • MACRA is likely to continue.
  • We will see greater consumer responsibility for healthcare costs, creating a more competitive market.
  • The number of uninsured people will increase by as many as 25 million, with conservative estimates hovering around 20 million.

Impact on the Healthcare Structured Cabling Market

What do these things mean for the healthcare structured cabling market? We can expect continued growth in the healthcare industry; however, it may look different than over the past decade.

  • Large hospital new construction is likely to decline. At the same time, hospitals are likely to continue investing in technology. This technology will deliver operational efficiencies and improved precision and diagnostics, which will drive down costs.
  • The amount of data will continue to increase, and speed of retrieval and analysis will be more important than ever. This forces the need for high-speed cabling and large-scale storage, especially as hospital groups continue to acquire independent facilities, creating more centralized systems.
  • Healthcare IT and facilities groups will have less budget to work with while being expected to deliver the highest quality of service to the organization.

Regardless of whether the ACA (also known as ‘Obamacare’) is repealed or not, it appears that the emphasis on value-based care will continue to grow. As structured cabling professionals, it is our responsibility to guide the healthcare community towards solutions that are both cost-effective and deliver the resilience and performance that a medical environment demands.

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*The Medical Industry Leadership Institute developed the Medical Productivity Index to measure the productivity of insurance-financed medical care. The MPI analyzes the health status achieved by a patient relative to the amount of resources invested in that patient’s care. The higher the index number, the better the return on investment. Care through Medicaid produces a low index value, whereas health savings accounts generally produce the highest index value.

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