Covid Healthcare Impact analysis

COVID has had an immediate and dramatic impact on global markets.

Quickly, commerce has been suspended, social subsidies have been distributed and standard, legacy consumer behavior has been stopped. Many of the expectations that have developed cultures have been reconfigured, potentially with multi-generational impacts.

The below (Exhibit A) represents the key themes from more than 75 interviews with sponsor-backed Boards and CEOs, as well as leading consultancies and investment banks. As a primary takeaway, demand across healthcare has largely been stopped, supply chains are being reconsidered, virtual care will be anywhere, payer mix’s are shifting and consumers are generally in shock.

Going forward, leading companies are shifting from a hyper-focus on resiliency to a continued-focus on re-imagination.

In the resiliency stage, companies optimized liquidity and ensured adequate leverage ratios, as well as bolstered key customer relationships and transitioned employees to a new working style. In the re-imagination stage, companies will have to consider advancements to current business models, prioritize the development of digital capabilities and better manage more of the non-clinical, operational aspects of healthcare.

There are many tailwinds expected for the healthcare vertical, with software and data capabilities in-demand.

First, healthcare has remained a very resilient, relative sector, despite a stay-at-home mandate that reduced US health system volume by 70%+. Already this demand loss is shifting more to a delay, with volumes returning to pre-COVID levels by Q3 / Q4, 2020. Additionally, a developing sector from an information technology perspective will see an acceleration away from service-focused business models and an introduction of more software / data models. More over, there will be a mandate to better improve productivity of the healthcare workforce through the intelligent automation of workflow, as well as improved coordination, communication and collaboration. Most important, consumers will move from shock and more deliberately usher in an after-Covid era.