How Temple Faculty Physicians Is Preparing for Medicaid Cuts by Betting on Innovation

CEO Claire Raab shares the academic practice plan's navigation of policy turbulence through improved access and workforce strategy.

Federal policy shifts like the One Big Beautiful Bill Act and potential Medicaid cuts are forcing many provider organizations to brace for financial disruption. At Temple Faculty Physicians (TFP), the academic practice plan of Temple University Health System, that pressure is more acute.

TFP’s North Philadelphia patient population is among the most Medicaid-dependent in the country, a reality that is driving president and CEO Claire Raab, MD, to confront policy volatility head-on.

“We are 87% government pay, which is really unheard of in the healthcare sector,” Raab told HealthLeaders. “But the good news is that at our baseline, Temple is a really resilient place.”

Rather than waiting for reimbursement changes to materialize, Raab explained that the organization is using the current window to rethink how it delivers care, supports clinicians, and maintains margins without relying on increased volume.

TFP is always planning for innovation, Raab noted, but “we have a little more gas on the pedal to make sure that we can have it in advance of when the cuts come so that we can continue to maintain our core business.”

One of the most immediate risks TFP is preparing for is whether patients will remain enrolled in Medicaid.

“Where other places may be challenged that their patients may not qualify, we believe we are really underserved and we believe our patients are the true examples of who needs that type of support,” Raab said. “It's incumbent on us to help them make sure they meet the re-enrollments.”

That support could take many forms, from application assistance to translation services—steps Raab acknowledges were historically left to patients themselves.

“We’re really trying to think of ways we can provide wraparound services if needed,” she said.

The mindset is indicative of how providers must think about access as payer rules become more complex and administrative burdens increase.

Pictured: Claire Raab, president and CEO, Temple Faculty Physicians.

AI as a retention strategy

One of the questions that TFP is attempting to solve for and Raab believes is integral to improving operational efficiency is “what’s the right way to use AI?” While the technology has become a centerpiece of many providers’ strategies, Raab is wary of using it as a blunt productivity tool.

TFP has adopted ambient AI tools for documentation, but Raab affirmed the decision-making process deliberately avoided the common pitch that AI should enable physicians to see more patients.

“It became very apparent to me, especially with the workload of physicians, that that is not the right approach,” she said. “If we were to look for an ROI on something that we would roll out, it would not be ‘see more patients’ or ‘crank the wheel harder.’ That’s not good for patients. That’s not good for doctors.”

Instead, Raab views the return on investment through a workforce lens, specifically in terms of reducing burnout and preventing physician attrition in a national shortage environment.

“There is an ROI on physicians being happy and not burning out,” she said. “Every time a physician quits, that is a cost to a health system, a potential loss of revenue, an opportunity cost.”

Her philosophy is simple, if not always easy to defend in finance meetings focused on immediate bottom-line results.

“Sometimes you do need to trust the process,” Raab said. “If you give people better tools and they are happier, you will end up with a better product.”

Flexibility as a competitive necessity

Beyond technology, TFP is adjusting its workforce model to reflect changing expectations among clinicians, particularly younger physicians who prioritize predictability and flexibility over traditional full-time roles.

“People are really, really invested in their time,” Raab said. “The culture of ‘you show up all the time and don’t ask questions,’ that has really changed.”

TFP now allows physicians to work as low as 70% clinical effort while retaining benefits, a move Raab said helps align professional demands with personal realities.

“[Physicians] care more about time than money,” she said. “We can still get the work done, and they can be happy in their personal life and then happier at work.”

Looking ahead, Raab believes the organizations best positioned to weather ongoing disruption will be those that communicate transparently and consistently with clinicians and staff. It could be through monthly town halls, video messages, or other touchpoints, but what matters is that leadership does it regularly.

Though it’s been tested by crises ranging from COVID-19 to ongoing financial pressures, that approach has helped strengthen TFP’s resilience.

“We’ve had a lot of really tough stuff,” Raab said. “And we’ve been managing through it with those guiding principles.”