Report focuses on major themes of aligned growth, financial discipline, regulatory excellence, strategic agility, and talent optimization
NEW YORK–(BUSINESS WIRE)–Healthcare executives are optimistic about future growth and financial performance, but they have concerns about regulatory and reimbursement restructuring as well as talent and workforce challenges, according to the Mindsets 2025 Healthcare Executive Leadership Report from Forvis Mazars.
“While these executives may be confident about margins in 2025, they have some challenges in terms of how they are going to find enough skilled labor to hit the growth targets necessary to meet those optimistic goals in a time of regulatory and economic uncertainty,” said Brad Brotherton, partner and national sector leader for the Healthcare Practice at Forvis Mazars.
These and other findings are part of the Mindsets 2025 report released today. The nearly 200 executives surveyed for the report represent a cross section of the healthcare industry that includes nonprofit and for-profit hospitals and health systems, physician group practices, senior living and long-term care providers, community health centers, and home care and hospice providers. Organizations from a wide range of sizes and geographic regions were included to achieve a balance of responses.
The report addresses five major themes related to the core capabilities organizations need to succeed in today’s healthcare landscape: aligned growth, financial discipline, regulatory excellence, strategic agility, and talent optimization.
Key findings include:
- Aligned Growth: Almost all executives surveyed expect some revenue growth over the coming year, and most (62%) indicate a preference for organic over inorganic growth strategies. However, the volume of mergers and acquisitions is expected to remain high, with financial sustainability as the main driver of consolidations.
- Financial Discipline: Executives show optimism about their organization’s financial standing, with 64% saying they believe financial performance will improve over the next two years. However, they are wary of barriers to financial sustainability, including high labor expenses, payor mix, reimbursement uncertainty, and capital expenditures. Organizations are prioritizing operational efficiency through workforce productivity, non-labor cost management, and revenue cycle improvement to achieve and maintain a healthy margin.
- Regulatory Excellence: Increased regulatory uncertainty and heightened concerns about reductions in reimbursement are weighing heavily on healthcare executives, with 45% of respondents saying new reimbursement regulations are disruptive to their organization. In this complex landscape, a growing number of respondents are approaching reimbursement as a strategic function of their organization that supports financial discipline, strategic agility, and aligned growth. However, questions about the reimbursement talent pipeline are leading executives to consider seeking more external support in the coming years.
- Strategic Agility: Most respondents report their organization completes an enterprise strategic plan at least once every two to three years, reflecting the importance of a more agile process to navigate ambiguity. However, nearly 40% of C-suite respondents say they spend less than 10 hours per month on strategic planning. Significant room for improvement remains in achieving the strategic plan’s stated objectives, with opportunities for executives to dedicate more focused time to strategize and align the strategic plan with routine decision making and the organization’s operating model.
- Talent Optimization: Concerns over turnover, burnout, and talent scarcity remain prevalent among healthcare executives, with 44% reporting significant levels of change fatigue at their organization and more than 57% saying patients’ needs frequently or always exceed their workforce capacity. To support organic growth and patient experience, organizations will need to focus on aligning their workforce with their care delivery model, mission, and vision. Artificial intelligence (AI) shows potential to improve workforce efficiency and reduce administrative burden on staff, though most respondents believe the true impact of AI is still a few years away.
“All of these issues are clearly interrelated,” said Chad Mulvany, director with the Healthcare Practice at Forvis Mazars and contributing author of the report. “Healthcare growth leads to a need for more clinicians and skilled staffing in a complex environment. In addition, healthcare executives are closely monitoring the political climate and trying to navigate an increasingly intricate healthcare regulatory system.”
“Our Mindsets report provides key insights into the challenges and opportunities facing healthcare organizations today,” said Chris Masone, principal and Healthcare Consulting market segment leader at Forvis Mazars. “It’s a valuable resource that will help inform strategy and decision making in pursuit of achieving health for our clients and those they serve.”
Forvis Mazars ranks among the largest public accounting firms in the country and is a leading provider of assurance, tax, and consulting services to thousands of organizations nationwide.
The firm’s Healthcare Practice serves more than 5,200 clients. It works with healthcare organizations to explore opportunities such as overcoming workforce pressures and other margin improvement challenges; staying ahead of an ever-evolving regulatory landscape; strategic planning to enact lasting change; and delivering sustainable, long-term value.
The Mindsets 2025 Healthcare Executive Leadership Report is available for download at www.forvismazars.us/mindsets-2025.
About Forvis Mazars
Forvis Mazars, LLP is an independent member of Forvis Mazars Global, a leading global professional services network. Ranked among the largest public accounting firms in the United States, the firm’s 7,000 dedicated team members provide an Unmatched Client Experience® through the delivery of assurance, tax, and consulting services for clients in all 50 states and internationally through the global network. Visit forvismazars.us to learn more.
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