Americans Catching Up on Healthcare Missed During COVID-19 Pandemic: Heart Procedures and Orthopedic Surgeries Leading the Way
A surge in healthcare procedures missed during the COVID-19 pandemic is happening across the United States, driven by heart procedures and outpatient orthopedic surgeries, according to interviews with three hospital officials in major U.S. cities. This trend is expected to continue and is raising concerns about rising costs.
U.S. health insurers, including Humana and CVS Health, have warned of the high demand for medical services based on late 2023 usage. While some insurers like Elevance and UnitedHealth have already factored in elevated medical costs in 2024, others are uncertain about how long this trend will last. Deutsche Bank analyst George Hill is concerned about the impact on insurers beyond 2024 and suggests that worries over continued cost increases could be affecting the sector’s shares.
Officials from Providence health system, Brigham and Women’s Hospital, and Tufts Medical Center have observed that the post-pandemic “catch-up” trend is seen across all age groups, with increased demand for oncologic care, cardiac care, and back pain surgeries. Tufts, in particular, experienced a record-breaking year in 2023, completing 61 adult heart transplants. Other hospital executives suggest that the rise in late 2023 surgeries can also be attributed to an aging U.S. population and factors typical to insurance, rather than being a direct result of the pandemic.
However, the demand for outpatient surgeries, which allow patients to return home the same day, is surpassing capacity, according to three hospital executives. The pandemic may have accelerated the shift to outpatient and offsite surgeries. Tenet Healthcare, a publicly-traded company, reported an increase in demand for outpatient procedures throughout 2023, with a significant rise in joint replacement surgeries towards the end of the year. Catch-up procedures also include gastrointestinal care and treatments affecting the ear, nose, and throat.
Dr. Hasan Alam, Surgeon-in-Chief at Northwestern Memorial, explains that the urgency of delayed procedures varies. More elective surgeries, such as joint replacements and plastic surgeries, are taking longer to schedule due to the backlog caused by the pandemic. However, the overall trend of Americans catching up on missed healthcare procedures remains strong.
Analyst comment
Positive news. Americans catching up on missed healthcare procedures is driving demand in the market, particularly for heart procedures and orthopedic surgeries. This trend is expected to continue, but concerns about rising costs may impact the sector’s shares. Demand for outpatient surgeries is surpassing capacity, indicating a shift in patient preferences. The backlog of delayed procedures is causing longer wait times for elective surgeries. Overall, the market will see continued growth in healthcare services.
