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In 2025, many health system leaders renewed an enterprise-wide strategy while navigating major uncertainties. They evaluated growth, advanced ambulatory and service line efforts, and balanced performance, growth, and transformation. In 2026, health systems will need to clearly define how they’ll transform to fulfill their missions and better serve patients.

As health systems face growing pressure to lower costs, increase market share and run more efficiently, one thing is clear — the strength of their ambulatory care portfolio is quickly becoming a key differentiator.

By effectively putting strategy into action, hospitals and healthcare systems can thrive amid today’s financial and operational challenges and position themselves to confront the looming threats that are just around the corner.

The challenges that hospitals and health systems currently face are amplifying this complexity, from uncertainty about potential changes to federal healthcare policy—including Medicaid and NIH funding cuts and tariffs—inflation, and ongoing workforce challenges.

Senior healthcare leaders and board members routinely ask us the following two questions.

The hospital and health system leaders we work with are extremely concerned about the financial impact their organizations may experience from potentially significant Medicaid policy changes, following the recent passage of a budget resolution by the U.S. House of Representatives.

A conversation with Rich Liekweg, CEO of BJC Health System in Missouri, and Nick Barto, president of BJC Health System

It has been an incredibly busy and exciting year for our Strategy & Business Transformation practice at Kaufman Hall. In 2024, we observed hospitals and health systems take steps to reinvigorate their strategic efforts amid a stabilizing, but still challenging, outlook.

As health systems enter a period of relative stabilization following the pandemic and its inflationary aftermath, many leaders are rethinking their organization’s enterprise strategy.

Some health systems may find themselves wondering if the retreat of both Walmart and Walgreens proves that primary care delivery is just too hard for disruptors to find success.

We’re pleased to welcome you to our Strategy Spotlight blog, a space where we intend to regularly share our insights—and those of our colleagues—on the evolving challenges and opportunities healthcare organizations are confronting.