5 Major Challenges Faced by the Healthcare Industry

Top 5 Challenges in the Healthcare Industry

The healthcare sector plays a tremendous role in the overall welfare of society and the nation’s economic growth. A robust healthcare system is a reflection of how developed a country is and so every hurdle in this sector needs to be addressed efficiently.  

Germany too has its share of healthcare challenges, as seen in a global survey conducted by the Sandoz Healthcare Issues Perception Study (SHIPS). According to the Commonwealth Fund’s 2023 survey, only 49% of patients in Germany reported being able to see a GP the same or the next day the last time they needed care. Senior physicians consider it to be a cause for concern.  

While Germany’s healthcare has made tremendous advancements, evident in its doubled life expectancy and cost reduction initiatives, the country still has a long way to go.  

Additionally, the pandemic opened many gaps in the healthcare sector across Europe that need immediate attention. Some of these important challenges are discussed below.  

AI-integrated software

Technology and artificial intelligence have taken over every industry, bringing more productivity and efficiency to each process. The healthcare sector is in dire need of more AI-integrated software applications to take care of the increasing data.  

As patient medical records, clinical notes and administrative data start to grow exponentially, better tools would be required for their storage and management. Solutions such as IBM Watson Health, Epic Systems, and SAP Healthcare already offer advanced platforms that enable hospitals to process, analyse, and retrieve medical information quickly.  

 The advanced database would be of immense use to the patient and record keepers at the hospital. It will make information readily accessible, helping patients book appointments and keep track of their treatment easily.  

While advanced data management systems are being introduced at healthcare facilities, many hospitals still await this much-needed technology.  

Costly Healthcare

Another pressing issue in this industry is the rising costs. Healthcare is going through a cost crisis and this impacts all the stakeholders in the long chain. This means everyone from pharmaceutical manufacturers to insurance policy providers and eventually, patients are impacted.  

Germany’s average out-of-pocket healthcare spending accounts for 12.6% of the total health expenditure, with a total per capita health spending of around €5,382. In contrast, countries like Luxembourg maintain much lower patient costs of just 5.6% despite having the highest overall health expenditure per capita at about €6,590. 

Most importantly, the rising cost of healthcare prevents patients from taking routine health screenings and keeping up with follow-ups. Hence, it becomes difficult to prevent, control and monitor health-related problems.  

Cybersecurity

Cyberattacks and data breaches are the cons of the digital age and need to be combated with swift and strong security measures. Sensitive information, such as patients’ health records falling into the wrong hands, is a serious breach of privacy and can be misused by hackers for various purposes. From personal data to payment information and even insurance details, the patient has a lot to lose in cybertheft.    

The AMEOS Group case is a prime example of a major data breach. Central Europe’s largest private hospital networks, operating over 100 facilities in Switzerland, Austria and Germany, suffered an attack, exposing information on more than 500,000 patients, employees, and business partners.  

Hospitals risk their reputation in such malicious attacks and are often required to pay a hefty penalty. Hence, it becomes crucial that healthcare providers invest in strong cybersecurity, which includes implementing multi-factor authentication and robust firewalls.  

Telehealth

The COVID-19 pandemic proved that medical providers need to adopt more digital platforms. As social distancing was enforced in 2020, patients had to take consultations on online platforms. In many countries, this technology was new and in dire need of development. Patients and doctors were testing telehealth tools for the first time, but it proved to be a boon for many during the lockdown.  

Telehealth and digital health in Germany have been in use, especially during the pandemic; the nation is seeing many new medical applications emerging. All these are tested by the Federal Institute for Drugs and Medical Devices (BfArM). Moreover, the German Digital Act (DigiG), which came into effect in March 2024, introduces new regulations designed to strengthen Germany’s position as a leader in digital health solutions. 

Better patient experience

Healthcare as an industry has undergone various changes and offers better and more advanced medical facilities. Patients now have heightened expectations and expect the best services from health establishments.  

From booking appointments to getting records, taking tests and the easy payment of medical bills, patients want each service to be hassle-free. A streamlined user experience helps hospitals attract patients and grow as an organisation. This sector faces tough competition and has to go the extra mile in terms of better services and technology.  

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