Capio can identify three main drivers of the growing demand for healthcare and associated costs. Firstly, the share of the population in the 60+ age bracket is increasing disproportionately, as the post-war baby-boomer generation ages. Secondly, overall medical progress and the ability to manage illness have resulted in an overall increased life expectancy. Thirdly, the spectrum of illness has shifted towards managing chronic conditions (such as diabetes, obesity or cardio-vascular disease) over longer periods of time.
While the population structure develops towards a larger share being elderly and while healthcare expenditure is increasing, the share of working people financing healthcare is expectedto decrease, resulting in constrained public healthcare budgets.
The Western European healthcare systems have begun to respond to this challenge. The Nordic countries were among the first countries to promote the adoption of Modern Medicine; evidence-based methods that allow certain conditions, which only a few years ago would have required major operations, to be treated today by a simple procedure or by medication alone. All of Capio’s markets are now focused on consolidation, performance-based remuneration models and the capturing of scale synergies, for example from vertical integration of the healthcare system or collaboration across care units.
1 World Bank.
2 OECD Health Data 2014.