Executives are rethinking strategies to navigate in an increasingly uncertain landscape, a new report reveals.
As macroeconomic and policy shifts continue to rattle industries across the country, healthcare decision-makers are recognizing the need for strategic change to keep up.
Economic and regulatory policies are particularly affecting leaders in health industries in comparison to executives in other sectors, according to a PwC's May Pulse Survey, highlighting the pressures facing healthcare organizations everywhere.
Whether it's providers trying to manage rising labor costs, pharma and medtech working to overcome supply chain challenges, or payers dealing with drug pricing, healthcare has been significantly impacted by the ebbs and flows taking place in Washington.
While nearly half (48%) of the 678 executives across six industries surveyed by PwC cited U.S. economic policy as a top-three reason to rethink their short-term strategies, that was the case for 61% of healthcare leaders.
Healthcare executives also gave more weight to other factors driving short-term strategy shifts in comparison to other industries, including AI and data regulations (56% to 44%), U.S. trade policy (44% to 41%), U.S. federal government spending and budget policy (37% to 35%), and corporate tax policy (34% to 33%).
The factors that resonated less with healthcare leaders than other sectors were U.S. antitrust and competition environment (24% to 31%) and climate policy (22% to 31%), with U.S. immigration policy's impact seen as even (22% for both).
In terms of most pressing concerns, health industries executives called attention to cyberattacks (90%), the uncertain macroeconomic environment (90%), margin pressure affecting earnings (85%), the complex regulatory environment (80%), and access to skilled labor (80%).
Healthcare flagged cyberattacks as a moderate or serious risk more than any other industry, reflecting how vulnerable healthcare organizations have been to recent cyber incidents that have slowed operations and led to revenue loss.
Unsurprisingly, access to skilled labor is keeping healthcare leaders up at night as workforce challenges continue to plague the industry.
"Providers face shortages as they care for an aging population with increasingly complex needs," PwC analysts wrote. "Pharma requires specialized expertise in biomanufacturing, cell therapies and regulatory compliance. While technology can improve the productivity of existing staff, mitigating some of the labor crunch, it comes with its own set of commitments like investing in change management and training. The AI wave is also driving increased demand for talent proficient in AI, machine learning and data analytics."
Healthcare executives have little choice but to adjust to combat the economic and policy volatility, which includes revising financial forecasts and budgets, implementing cost reductions, assessing tariff impacts, renegotiating supplier prices, and even reshoring manufacturing operations, according to the survey.
"To steer business through all this uncertainty, HI leaders have to stay nimble," PwC analysts wrote. "This means focusing on customers, making processes more efficient, significantly lowering cost structures and doubling down on the fundamentals of quality, compliance and cyber protection."
The move to divide the business into six divisions comes after the company experienced a string of executive exits.
Amazon is making another significant pivot with its healthcare business, signaling a strategic reset.
In the wake of uninspiring results and a run of departures by high-level executives, the tech giant has restructured Amazon Health Services into six new units with the aim of being nimbler and more streamlined.
As a result, Amazon is integrating operations and narrowing its focus to offerings with clearer pathways to growth, namely One Medical and its pharmacy services.
Neil Lindsay, senior vice president of Amazon Health Services, shared with CNBC¸ which first reported the restructuring, that the decision improves the company's ability to serve and reach as many patients as possible.
"Our leadership team has been focused on simplifying our structure to move faster and continue to innovate effectively," Lindsay told the network. "One of the problems we're trying to solve is the fragmented experience for patients and customers that's common in healthcare."
The company has placed Amazon executives and leaders from One Medical at the helm of the six divisions:
One Medical Clinical Care Delivery, led by Dr. Andrew Diamond
One Medical Clinical Operations and Performance, led by Suzanne Hansen
AHS Strategic Growth and Network Development, led by John Singerling
AHS Store, Tech and Marketing, led by Prakash Bulusu
AHS Compliance, led by Kim Otte
AHS Pharmacy Services, led by John Love
"If we can make one thing a little bit easier for a lot of people, we'll save them a lot of time, a lot of money, and some lives," Lindsay told CNBC. "And if we stack these changes up over time, it'll feel like a reinvention."
Amazon's foray into healthcare has been ambitious, marked by a series of acquisitions and course corrections. Its $3.9 billion acquisition of primary care provider One Medical in 2023 was a major step in expanding its clinical footprint. The launch of Amazon Clinic, a virtual care platform, and Amazon Pharmacy, built on the 2018 PillPack acquisition, were similarly bold plays to vertically integrate healthcare delivery.
However, not all bets have panned out. The joint venture Haven, formed with JPMorgan Chase and Berkshire Hathaway, was dissolved in 2021. Internal projects like Amazon Care were also shuttered after failing to meet the company's standards for scale and impact.
Amazon is continuing to invest in One Medical and its pharmacy business though. One Medical is working to open new offices in New Jersey, New York, and Ohio, whereas Amazon's pharmacy offerings have experienced growth, allowing it to plan for pharmacy openings in 20 new cities this year.
Additionally, Amazon has seen executives in its healthcare business exit the company in recent months. One Medical CEO Trent Green left in April and followed the departure of Dr. Vin Gupta, who vacated his role as CMO of Amazon Pharmacy in February.
Meanwhile, Aaron Martin, Amazon's vice president of healthcare, and Dr. Sunita Mishra, Amazon's CMO, also internally announced their exits in May, according to CNBC.
It's unclear if Amazon's healthcare recalibration will provide it with the traction it's been seeking, but it could be an indictor for fellow disruptors and competitors of where consumer expectations and the industry are heading.
Prioritizing safety helps protect staff from harm and demonstrates leadership’s commitment to their well-being.
Workplace violence unfortunately remains a major concern for hospital CEOs, who recognize that employee safety is vital to maintaining a sustainable workforce.
At the recent HealthLeaders CEO Exchange, hospital and health system decision-makers shared strategies they’ve deployed at their organizations to mitigate violence against staff and patients.
Here are three approaches that were discussed at the Exchange.
Are you a CEO or executive leader interested in attending an upcoming event? To inquire about attending the HealthLeaders Exchange event, email us at exchange@healthleadersmedia.com.
The HealthLeaders Exchange is an executive community for sharing ideas, solutions, and insights. Please join the community at our LinkedIn page.
Hospitals showed resilience over the first four months of the year, even as cost pressures persisted.
Hospitals are continuing to build on early-year momentum, reflecting encouraging trends in performance.
Increased demand for care and improved patient throughput at hospitals in April resulted in a gain in operating margins, according to Kaufman Hall's latest National Hospital Flash Report, which analyzes data from 1,300 hospitals.
The median year-to-date operating margin for hospitals through April, inclusive of all allocations for the cost of shared services that they receive from their health system, stood at 3.3%, up from 3.1% in March and marking a 6% improvement compared to the same period last year. The monthly margin ticked slightly up from March's 2.9% to April's 3%.
"Hospital performance from January to April outpaced the first four months of 2024, largely driven by patient volume and hospital efficiency," says Erik Swanson, managing director and group leader of data and analytics at Kaufman Hall. "Operating room minutes, ED visits, and inpatient revenue are trending upward, demonstrating a strong demand for services. A decline in average length of stay indicates that hospitals are triaging, treating, and discharging patients efficiently and appropriately."
April saw a bump in patient volumes, continuing a shift that's been key to hospitals' financial resiliency in 2025. Discharges per day rose 3% year-over-year, while adjusted discharges per day climbed 5%. On a year-to-date basis, emergency department visits increased 3% compared to the same period in 2024, and operating room minutes per day were up a modest 1%.
One of the most notable improvements came in length of stay, which declined by 3% year-over-year. That reduction is helping hospitals treat more patients more efficiently—critical amid ongoing workforce and capacity challenges.
In terms of revenue, net operating revenue per calendar day jumped 6% in April compared to last year, with outpatient revenue per calendar day leading the way with a 10% rise and inpatient revenue per calendar day also climbing 5%.
Expenses, however, remain a challenge. Total costs per day increased 7% year-over-year, with significant growth in supply (9%), drug (7%), and purchased services (8%) costs. Labor costs also grew by 6%, despite many systems focusing on right-sizing their workforces.
Hospitals also saw a 5% increase in bad debt and charity care compared to last April, adding to the financial pressures.
Though hospitals are finding ways to adapt and volume boosts are helping, the margin for error remains thin.
The suddenly-struggling company is hoping to regain internal and external confidence during a tumultuous stretch.
Amid mounting financial pressures and continued backlash, UnitedHealth Group is eyeing a significant move out of international markets as it works to reestablish its core U.S. business.
The health insurance giant has four nonbinding bids for Banmedica, its subsidiary operating in Colombia and Chile, for roughly $1 billion, according to a report by Reuters, which cited two people with direct knowledge of the matter.
The bids are from Washington, D.C.-based private equity firm Acon Investments, Sao Paulo-based private equity firm Patria Investments, Texas nonprofit health firm Christus Health, and Lima-based healthcare and insurance provider Auna, the report stated. Binding proposals are expected by July.
This latest potential step in UnitedHealth’s international unwind reflects the broader recalibration at the company, which has faced a confluence of challenges over the past year. Since the murder of UnitedHealthcare CEO Brian Thompson in December, UnitedHealth has seen shares plummet while it’s made headlines for all the wrong reasons.
Around the time CEO Andrew Witty stepped down from the role for personal reasons in May, TheWall Street Journalreported that UnitedHealth is under investigation by the Department of Justice for possible criminal Medicare fraud.
Following the news and the release of a disappointing earnings report, new CEO Stephen Hemsley acknowledged UnitedHealth’s recent struggles at the company’s annual shareholder meeting earlier this month.
“We are well aware we have not fulfilled your expectations or our own,” Hemsley said. “We apologize for that performance and we are humbly determined to earn back your trust and your confidence.”
By divesting Banmedica, bought for $2.8 billion in 2018, UnitedHealth is expected to refocus its efforts in the U.S. market as it attempts to steady itself.
The company recorded a loss of $1.2 billion last year from its operations in Banmedica, which serves more than 2.1 million consumers through its health insurance programs and has around four million patient visits annually across its network of 13 hospitals and 143 medical centers, Reuters reported.
UnitedHealth also suffered a $7.1 billion loss in 2024 from the sale of its Brazilian health insurance business, Amil. That divestiture in 2023 was followed by the company’s exit from Peru in March.
Stepping back from markets where scale and long-term strategic synergy are lacking can allow UnitedHealth to send a message to its stakeholders that stabilization and focus on core businesses will be the priority to weather the current turbulence.
Executives outlined strategies to address intensifying demands at the recent HealthLeaders CEO Exchange.
As the landscape in healthcare continues to shift and evolve, it's on hospital CEOs to meet the moment by proactively attacking challenges head-on.
With pressure mounting from workforce shortages, cybersecurity threats, and rising violence in care settings, leaders know that it's crucial to identify and implement the right solutions.
Here are four strategic imperatives executives at last week's HealthLeaders CEO Exchange discussed to solve for some of the major concerns currently facing decision-makers.
Invest in your people
Every organization wants to strengthen its workforce and while there are several ways to tackle staffing issues, CEOs at the Exchange highlighted that a people-focused approach should be at the forefront.
Reigniting joy and purpose for healthcare workers is key, especially with aftereffects of the pandemic still being felt. Fostering a positive culture to create more enthusiasm, especially by celebrating high performers and supporting career growth, can go a long way.
Technology should be used to support clinical workers, not add to their burden. Organizations are adopting tools like ambient documentation and AI-driven radiology, but success depends on involving frontline staff in testing and selecting solutions that work for them.
Reinforce workplace safety
The unfortunate reality for the healthcare workplace is that it's impossible to prevent violence completely.
However, the growing threat of violence is prompting organizations to take layered, often discreet approaches to staff and patient safety. Monthly workplace violence committees, active shooter drills, and panic buttons embedded in employee badges are part of wider strategies Exchange members are utilizing.
Though some hospitals employ armed guards, most security measures are designed to be non-intrusive. Enhancements in waiting areas, psychiatric support, and facial recognition tools help mitigate potential incidents, while staff de-escalation and support initiatives aim to address daily aggression.
Prepare cybersecurity response
Executives at the Exchange agreed that cybersecurity is no longer just an IT concern, but a core leadership priority.
Though prevention is still necessary, the focus for organizations is shifting to rapid response, with cyberattacks all but inevitable. In the wake of an attack, it's vital that hospitals can recover as quickly as possible to keep operations running, including having a communication plan ready to go. By staying in a hybrid environment that includes both data centers and the cloud for data storage, leaders won't be overcommitted one way or the other and can balance speed with control.
In terms of prevention, email remains the top entry point for cyberattacks, which is why health systems should be educating staff through phishing simulations. The rise of AI-driven attacks is also putting more emphasis on social psychology, with bad actors gaining access through impersonation like never before. To combat this, one leader suggested that their peers ask off-the-wall questions to verify identities during conversations.
Embrace change
Finally, CEOs recognize that resilience is vital right now with change becoming the norm in healthcare.
Organizations are investing in regular leadership gatherings and enterprise-wide training to empower teams through volatility. Frontline management resiliency training, trust-building, and open dialogue with regional leaders are seen as essential for maintaining stability and morale in an increasingly dynamic environment.
Ultimately, the next seismic event will eventually occur, whether it's at the scale of a pandemic or provider-specific like site-neutral payment policy. How leaders weather those storms will determine long-term success.
Are you a CEO or executive leader interested in attending an upcoming event? To inquire about attending the HealthLeaders Exchange event, email us at exchange@healthleadersmedia.com.
The HealthLeaders Exchange is an executive community for sharing ideas, solutions, and insights. Please join the community at our LinkedIn page.
Job growth in healthcare is chugging along while other industries deal with a stagnation due to economic pressures.
Despite job growth across all industries declining last month, healthcare continued to add jobs at an encouraging rate.
The sector gained 62,200 jobs in May, a step up from the 50,600 jobs added in April and well above the average monthly increase of 44,000 over the past 12 months, according to a report by the Bureau of Labor Statistics.
The growth was largely driven by hospitals and ambulatory healthcare services, which saw an increase of 29,900 and 28,700 jobs, respectively.
Within ambulatory healthcare services, 9,800 jobs came from physician offices and 12,300 were contributed by home healthcare services.
Skilled nursing care facilities chipped in 6,300 jobs, but job loss across other parts of nursing and residential care facilities resulted in the subsector adding 3,600 jobs, a significant decrease from the 7,100 jobs created in April.
Overall, the U.S. added 139,000 jobs in May, down from the increase of 177,000 jobs in April and below the average monthly gain of 149,000 over the prior 12 months.
The unemployment rate, meanwhile, held at 4.2% last month and has remained in a narrow range of 4% to 4.2% since May 2024. In total, 7.2 million people were unemployed.
Even with healthcare demonstrating job growth, hospitals and health systems across the country have been reducing their workforce to contend with rising labor costs.
PeaceHealth became one of the latest health systems to opt for layoffs earlier this month when the Pacific Northwest-based organization announcedthat it would cut 1% of its staff.
Leaders recognize they must adjust with the times to improve their recruitment and retention efforts.
In the face of ongoing workforce shortages and rising labor costs, hospital CEOs are revamping their approach to designing and building teams.
Whether it’s investing in education partnerships, strengthening nurse residencies, or responding to the evolving needs of younger generations, hospital leaders are thinking creatively about workforce sustainability.
CEOs shared their experiences with workforce strategies at their respective organizations on the first day of the HealthLeaders CEO Exchange, which brought together dozens of top-level executives for discussions on operating in an ever-changing industry.
Be flexible
One of the themes that emerged from conversations between members was the need for flexibility with the clinical workforce.
Rigidity and sticking with standard procedures can no longer be the prevailing mindset. Instead, leaders must innovate and think outside-the-box to fill in gaps.
For example, one executive said their hospital is exploring a seasonal model in which staff move between facilities based on patient volume at different times of the year to better match staffing levels with fluctuating demand.
Create a pipeline
Another area of focus for leaders was how to build a workforce pipeline to ensure a steady, reliable flow of qualified talent
Several systems are partnering with high schools and secondary schools to help students gain certifications soon after graduation. Some are even creating their own educational institutions to ensure a steady talent pool.
One CEO highlighted a nursing residency model that’s showing strong results. Their organization offers a one-year nurse residency program paired with a two- to three-year commitment to remain with the system. The outcome has been a retention rate of 99%, with the goal of building deep institutional knowledge and turning participants into subject matter experts through structured training and frontline experience.
Meet generational needs
With millennials and Gen Z comprising a growing share of the workforce, organizations are evolving how they support and communicate with their employees.
That starts with recognizing what you don’t know or aren’t familiar with. One CEO shared how they brought in a generational expert to help their leadership understand the needs of younger workers.
By recognizing that millennials and Gen Z often crave more real-time, positive feedback, as well as mental health support, can allow hospitals to enhance their management style and expand their mental health benefits to help staff navigate stress and burnout.
Are you a CEO or executive leader interested in attending an upcoming event? To inquire about attending the HealthLeaders Exchange event, email us at exchange@healthleadersmedia.com.
The HealthLeaders Exchange is an executive community for sharing ideas, solutions, and insights. Please join the community at our LinkedIn page.
The Catholic nonprofit is reportedly close to adding AmSurg’s network of more than 250 surgery centers.
Ascension’s portfolio alignment could soon include the acquisition of a major ambulatory surgery center company.
The St. Louis-based health system is in talks to purchase AmSurg for $3.9 billion, according to Bloomberg, with sources indicating that a deal could be reached within weeks.
AmSurg, which operates more than 250 outpatient surgery centers across 34 states, was previously part of Envision Healthcare before splitting from the company as a result of its 2023 bankruptcy. Now, it is owned by Pacific Investment Management Co, King Street Capital Management, and Partners Group, Bloomberg noted.
For Ascension, an acquisition of AmSurg would significantly boost its outpatient offerings and follow the trend of health systems investing in the cost-effective care setting.
The move would also align with Ascension's ongoing efforts to shift its portfolio, with the organization having recently transferred or sold several hospitals to other health systems.
Ascension reached a definitive agreement with Beacon Health System in April to divest its Michigan southwest region, which includes four hospitals, 35 outpatient clinics, and an ambulatory surgery center.
Prior to that, Ascension completed a sale of eight hospitals to Prime Healthcare, transferred eight hospitals to Henry Ford Health in a joint venture, and sold three Michigan hospitals and an ambulatory surgery center to MyMichigan health.
The divestitures were reflected in Ascension’s most recent earnings report, showing a $466 operating loss and a dip in operating revenue to $6 billion, compared to $7.4 billion over the same period last year.
Nemours Children’s Health CEO R. Lawrence Moss shares his outlook on the changing dynamics of pediatric care.
Children’s health is shifting on a granular level, with hospitals continuing to evolve to meet the demands of care settings.
Holistically, Nemours Children’s Health president and CEO R. Lawrence Moss, MD, FACS, FAAP, wants to see whole child health become more of an emphasis for reducing chronic disease and healthcare spending.
Moss recently spoke with HealthLeaders about the path children’s health is on, in terms of where it is going and where it should be heading.
