AI and Aging Population Poised to Reshape $8.6 Trillion US Health Care Future

US health care spending could surge to $8.6 trillion by 2035, more than one-fifth of the nation’s projected gross domestic product, unless the industry undergoes a major transformation, according to a new PwC report.

With annual spending already topping $5 trillion and costs rising at unsustainable rates, health care leaders must fundamentally rethink how care is delivered, funded, and experienced. The analysts predict a coming decade of disruption as artificial intelligence (AI), automation, and consumer expectations reshape the health care landscape.

Soaring costs, administrative overload, workforce burnout, and an aging population strain America’s health care system. Within 10 years, the number of Americans aged 65 years or older will surpass those younger than 18 years, intensifying demand for chronic and geriatric care while shrinking the younger, healthier workforce that helps fund it. Nearly one-half of physicians already report burnout, and a shortage of doctors is expected within the next decade.

PwC forecasts that $1 trillion in annual spending could shift away from traditional, fragmented, brick-and-mortar models toward digital-first systems driven by empowered “super consumers.” These next-generation care models will be proactive, personalized, and AI-enabled, and could improve outcomes while reducing administrative waste.

By 2035, analysts envision health care that is largely home-centered, supported by connected devices, robotics, and virtual platforms. Hospitals would evolve into modular “high-speed care nodes” for acute interventions, while drones, wearables, and sensors extend access and enable earlier intervention. Physicians would rely on AI for triage and decision support, focusing more on clinical judgment than paperwork.

To realize this future, PwC urges health care organizations to shift investments from outdated infrastructure to intelligent platforms integrating triage, diagnostics, navigation, and reimbursement. Traditional players must “commit to structural reinvention,” the report says, adopting hybrid workforces, outcome-based strategies, and continuous innovation.

Payers will need to automate operations and take a more active role in managing population health, while providers pivot to AI-assisted, consumer-centered care. The medtech sector is expected to evolve from devices to intelligent systems that merge diagnostics and therapy through connectivity and neuromodulation.

“The critical test for the future of health will be whether a major industry outsider—free from legacy infrastructure but armed with capital—will have the vision, insight and resolve to disrupt healthcare,” PwC analysts concluded.

Reference

AI-driven, digital-first models could capture $1T in healthcare spend by 2035: PwC. Fierce Biotech. Published September 20, 2025. Accessed October 10, 2025. https://www.fiercehealthcare.com/health-tech/2035-1t-healthcare-spend-will-shift-digital-first-ai-driven-healthcare-system-pwc

PWC. From breaking point to breakthrough: the $1 trillion opportunity to reinvent healthcare. Published September 17, 2025. Accessed October 10, 2025. https://www.pwc.com/us/en/industries/health-industries/library/future-of-health.ht