UK healthcare business leaders are predicting a rise in confidence in their businesses’ ability to thrive and prosper in 2020, with a 10% increase in confidence levels predicted by next spring compared to spring this year. At the same time, 94% believe that the current risk environment is moderate to high but this percentage drops to 80% when looking ahead to next year.
Despite healthcare bosses predicting an improvement in the risk environment, these levels of risk concern are some of the highest across all nine sectors we surveyed for our CNA Hardy Risk and Confidence report this year.
As we head into 2020, there is no doubt that the UK healthcare sector faces significant change as economic challenges and skill shortages drive greater demand for ‘smart health’ solutions which offer the opportunity to deliver more community focused and cost-effective services. These changes are reflected in the top predicted risk concerns for healthcare bosses that we surveyed being economic risk, which goes from 30% in May this year to 24% by next spring and political risk which rises 12 percentage points from 8% this May to 20% by 2020.
These risk concerns are impacting Healthcare firms’ investment plans with a wholesale decrease in investment across all the main areas of their business predicted in 2020, with notable reductions in topline sales, tech, and equipment and the hiring of permanent staff.
As reliance on technology grows, healthcare firms will be operating in a new and unchartered risk environment – where errors and omissions and cyber risk will be as big a risk as professional indemnity. To navigate the new risk landscape, healthcare firms will need to work closely with their insurance partners to adapt their risk mitigation programme to ensure that it is fit for purpose.