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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.

With an estimated $1 trillion in healthcare-related spending reductions, the One Big Beautiful Bill could significantly disrupt the U.S. healthcare system. Flourishing in the face of uncertainty will require focus on four imperatives: margin transformation, care delivery realignment, structural resilience and technological enablement.

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.