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New Year, New Outlook: Healthcare Execs Optimistic About 2025

Analysis  |  By Jay Asser  
   December 30, 2024

Surveyed C-suite leaders from health systems and health plans forecasted the coming year.

As the healthcare industry turns the page on a demanding 2024 and heads into the new year, leaders could have reason to be bullish.

While challenges persist, a better understanding of how to tackle them, along with an improved financial climate, is giving healthcare executives the confidence to expect a favorable 2025, according to a survey by Deloitte's Center for Health Solutions.

The survey, comprised of responses from 80 C-suite executives from large health systems and health plans with revenue greater than $500 million, revealed that 59% have a positive industry outlook for the coming year, compared to 52% a year ago.

Driving that outlook is a belief that revenue will increase in 2025, which 69% of respondents anticipate, and that profitability will improve, expected by 71%.

"Over the past two years, many US health care organizations have faced margin pressure, workforce shortages, and an industrywide push to adopt digital technologies," the survey's authors wrote. "After several years of stabilizing their businesses, 2025 could mark a turnaround period for the health care sector, driven by innovation, resilience, and strategic growth."

The new year, however, does bring uncertainty as well, due to a new Presidential administration affecting regulatory and policy changes. Forty-four percent of respondents said that the uncertainty could impact their strategies in 2025.

The two areas leaders are prioritizing for their strategies are growth, chosen by 65%, and consumer affordability, cited by 46%. To achieve organic growth, many respondents are focusing on acquiring new consumers rather than pursuing mergers and acquisitions, the survey stated. To appeal to new consumer, 53% of executives want to improve the consumer experience, engagement, and trust.

Over half of respondents (55%) are also eying cybersecurity enhancements, while 36% identified investment in technology platforms, underscoring the importance of digital strategies for growth.

Priorities differ for health systems and health plans. Whereas insurers care more about investing in transformative technologies and preparing for regulatory changes, health systems are zeroed in on addressing workforce challenges and strengthening core business technologies.

More than half (58%) of health system leaders anticipate workforce challenges like lack of retention to impact their organizational strategies in 2025, though the urgency around the workforce has reduced the further out the industry is from the pandemic, according to the survey.

Even with the landscape potentially evolving for the better, all organizations must continue to refine their approach to ensure they're not just planning for 2025, but beyond as well.

Jay Asser is the CEO editor for HealthLeaders. 


KEY TAKEAWAYS

Nearly 60% of C-suite executives from healthcare organizations have a favorable outlook for 2025, a survey by Deloitte's Center for Health Solutions found.

Growth and consumer affordability are the two themes for leaders tailoring their strategies in the coming year.


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