Citi Perspectives 2024 Corporates Edition

8 | Services Citi Perspectives All of these trends are leading healthcare finance leaders to focus on costs as a key priority. Seventy percent of CFOs were worried about cost pressures on healthcare systems due to soaring labor costs and high interest rates. 4 These leaders are increasingly looking toward outsourcing functions and adopting digital models to drive efficiencies and achieve savings. As healthcare organizations increasingly rely on innovative business models to grow their footprints globally, achieving healthcare equity also remains top-of-mind. The industry faces the challenge of making healthcare affordable and accessible to underserved populations, which represent more than 50% of the world’s population. 4 As a result of all of these factors, treasury organizations are under pressure to explore future payment models in order to meet the evolving needs of their businesses. 4 Philips | Global access to healthcare - Source: https://www.philips.com.sg/a-w/about/news/archive/standard/news/press/2022/20221129-10-things-to- know-about-global-access-to-healthcare.html 5 Source: Pitchbook The convergence of health, technology and the consumer The healthcare industry of today is substantially different from that of only a few years ago. Technology and consumer demand are converging to progressively influence more personalized, preventative, and convenient experiences. Today, many patients are receiving care either at home through telehealth services or in retail settings. Healthcare-tech is also exploding as clinical- grade devices and consumer devices are fast becoming indistinguishable in their capabilities. For example, smart watches can provide EKG functions and are soon expected to measure blood pressure and may eventually indicate glucose levels. This has led a number of tech titans to enter the healthcare space. Venture capital is flocking to the healthcare marketplace. In 2022, venture capital investment in healthcare reached $73 billion. 5 With this kind of capital flowing in, the potential for disruption is even greater. Increasing focus on proactive and preventative medicine With major advancements in testing and treatments, the healthcare industry is increasingly focused on treating problems earlier, oftentimes before symptoms appear. Innovations, such as liquid biopsies, hold the potential to detect cancer before it can spread, making treatment and cure possible. Similarly, tests for specific proteins hold the promise of revealing dementia even before symptoms develop, offering opportunities for earlier treatment . As costs around DNA testing continue to fall, advances in polygenic risk scoring will continue to open the door to assessing the risk of conditions individuals may be predisposed to, allowing doctors to be more proactive and intervene earlier. As previously mentioned, GLP-1 development is growing rapidly and holds the promise of profoundly improving treatment of diabetes, kidney disease, cardiovascular disease, geriatric issues, and obesity, helping to increase a healthy lifespan as the global population ages.