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A new report from PwC examines the challenges the health care sector will be facing this year and says that "compression" is the best single word to define the industry, as cost pressures continue to challenge health care companies.

However, the analysis found that there are still opportunities across an industry that continues to change and innovate. Pursuing new approaches and partnerships could be helpful for health care players across the board, it said. "The sector looks like a scene from a science fiction movie, where the walls steadily close in on the heroes looking for a way to escape," the report said. "On one side is the Centers for Medicare & Medicaid Services (CMS), trying to slow the trend and pushing requirements for providers to adopt value-based care (VBC), while consumers and employers continue to push for value. On the other side is the inflationary environment of higher wages; high costs of labor and business; and the rising cost of pharmaceuticals."

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