Health Care in 2035: Predicting Trends and Transformations with PwC’s Tea Leaves

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September 22, 2025

Healthcare at a Crossroads: $1 Trillion Disruption Looms

Washington D.C. – A recently released analysis indicates the United States healthcare system is facing a critical juncture, with current spending trajectories deemed “untenable.” A comprehensive report predicts a massive restructuring of the industry by 2035, fueled by advancements in biology and technology, and requiring a reallocation of over $1 trillion in resources.

Unsustainable Costs Demand transformation

For the past three years, national health expenditures in the U.S. have risen by over 8% annually, a rate experts say is not sustainable.The vast majority-approximately 90%-of this spending is directed toward treating chronic and mental health conditions, highlighting a reactive rather than preventative care model. This financial strain necessitates innovative solutions to curb costs and improve outcomes. According to the Peterson-Kaiser Health System Tracker, U.S. healthcare spending reached $4.5 trillion in 2022,representing 17.3% of the nation’s Gross Domestic Product.

The Biological and Technological Revolution

Experts believe the key to transforming the healthcare landscape lies in harnessing the power of biology and technology. Exponential advancements in technology promise to simplify care delivery at scale, while breakthroughs in biological understanding are enabling personalized, precision medicine.This shift necessitates a move toward proactive, preventative care guided by data-driven insights. Artificial intelligence (AI) is playing an increasingly prominent role, with applications ranging from diagnostics to drug revelation.

Disruption and the Reallocation of Resources

The projected changes will inevitably disrupt existing business models and challenge the conventional roles of hospitals,insurance companies,pharmaceutical firms,and medical technology companies. The report identifies several “cost pools” ripe for reallocation by 2035,including:

Cost Pool	Description
Administrative Overhead	Streamlining processes and reducing bureaucratic inefficiencies.
Facility & Infrastructure	Optimizing resource use and shifting care to more cost-effective settings.
Drug & Device Waste	Reducing unnecessary prescriptions and improving supply chain management.
Reimbursement Reforms	Aligning payment structures with value-based care.
Labour & Staffing	Optimizing workforce allocation and leveraging technology.
chronic Care Reduction	Investing in preventative care and early intervention programs.
Low-Value Service Elimination	Reducing unnecessary tests and treatments.

A Consumer-Centric Future

The envisioned healthcare model of 2035 prioritizes the consumer experience,offering co-designed,bundled services delivered seamlessly. Virtual care will take precedence where appropriate, augmented by AI-powered data analysis and algorithms. Collaborative partnerships, even disruptive ones, will form the backbone of this new ecosystem, ensuring responsible data governance and equitable access.

The future suggests a shift toward “public health is personal health,” with the home emerging as the primary hub for medical care. Hospital-to-home transitions will become integral to a comprehensive, platform-based healthcare delivery system.

Navigating the Shifting Landscape

Recent trends indicate a growing emphasis on individual responsibility in healthcare, with individuals increasingly acting as “CEOs” of their own health. This involves actively seeking out and managing their care, often through direct-to-patient (DTP) options like hims & Hers and Ro, alongside a rising number of self-care models.

Recent research indicates that around half of U.S. adults are open to embracing technologies like AI-driven treatment plans, robotic assistance for medication delivery, DNA-tailored medications, and the seamless exchange of health records.

Long-Term Implications

The changes outlined in this report will have far-reaching consequences for all stakeholders in the healthcare industry. Those who proactively embrace these shifts and address the inherent challenges will be best positioned for success. The ability to adapt and innovate will be paramount in the coming decades.

Frequently Asked Questions

• What is driving the need for healthcare disruption? Unsustainable cost increases and a reactive care model are the primary drivers.
• How will technology impact healthcare delivery? Technology will simplify care, enable personalized medicine, and facilitate virtual care options.
• What are the main cost pools targeted for reallocation? Administrative overhead,facility costs,drug waste,and inefficient staffing are key areas.
• How will consumers be impacted by these changes? Consumers will have more control over their care and access to innovative, convenient services.
• What role will AI play in the future of healthcare? AI will be instrumental in diagnostics, treatment planning, and data analysis.
• What is the timeframe for these changes to occur? The most meaningful changes are anticipated to unfold between now and 2035.

What are your thoughts on the evolving role of technology in healthcare? Do you feel empowered to take control of your health, or do you anticipate challenges navigating this new landscape? Share your comments below.