Private equity is reshaping healthcare, pushing CFOs to rethink strategy, investment, and workforce priorities.
Private Equity Disruptors
The industry has mixed feelings about private equity (PE) in healthcare. Providers are divided between competing with PE disruptors and partnering with them.
PE deals peaked in 2021, and have been slowly trending downward since then, but PE deal-making is expected to rise in 2025 as interest rates come down and antitrust scrutiny calms under the Trump administration.
In healthcare policy analyst Paul Keckley’s recent report, he notes: “[the] models they fund will emerge as cheaper/better alternatives to hospital services,” which would create competition for traditionally funded health systems.
As value-based care initiatives and AI deployment drive financial and clinical operations, industry experts speculate that PE firms will target:
- Multispecialty physician practice managements ready to move into risk-bearing contracts.
- Independent hospitals and regional systems that are struggling to balance clinical outcomes while managing costs.
- Platforms that connect ambulatory and acute care settings through data and technology.
Another tactic used by PE firms to avoid antitrust backlash is forming joint venture partnerships rather than traditional mergers and acquisitions. This allows PE firms to gain access to new markets through trusted organizations to achieve growth.
Economy & Capital Deployment
The Trump administration has moved fast in its first 100 days, enacting tariffs, hinting at Medicaid cuts and massive federal health organization cuts, and creating uncertainty and instability across the industry.
As providers decipher how to avoid additional expenses like tariffs, they need to balance capital expenses for new technology and facility needs., They also must keep up with the pace of innovation, or risk falling behind and missing out on cost savings as well as operational efficiency improvements.
Although every organization will have different needs and resources that drive capital allocation, sticking to consistent fundamentals can help CFOs implement successful processes.
According to HFMA, health systems should be:
-Resuming delayed capital projects that were postponed during the pandemic.
-Investing in new technology and technology upgrades to avoid technical debt, cyberattacks and innovation stagnation.
-Prioritizing high-performing service lines such as cardiovascular, oncology, orthopedics and neurology/spine services.
-Shifting outpatient services to focus investments in areas like ambulatory care.
Physicians & Workforce Shortages
A Stanford Medicine study found that although physicians felt less burned out in 2023-2024 than in previous years, nearly half of the respondents said they experienced at least one symptom of burnout in 2025.
CFOs can ensure they are in-tune with their CMOs and CNOs to understand where physician satisfaction and collaboration lies in their organization. Understanding how to optimize physician relationships will be a vital component to recruiting and retaining quality physicians.
Bradley Hipp, CFO of Tucson Medical Center, told HealthLeaders he thinks of physicians as partners, not employees, and he emphasized the value of a strong collaborative relationship.
"I see finance's role as more of a consultative-type approach, where we can present data to the chair or the physician leadership," Hipp says. “But if you don't have that collaboration with those physicians then you're not going to be successful."
This collaborative mindset should stretch to all clinical staff, especially with the continuing workforce shortage. One study projects a shortage of up to 3.2 million healthcare workers by 2026.
Sound recruitment and retention strategies will make a difference, and competitive compensation is certainly a component. At AdventHealth, workers are offered a variety of support tools and programs, including a student loan repayment program and tuition assistance.
“We have been paying out market adjustments to ensure our team members are being paid a living wage and that they feel fairly compensated,” Kaitlyn Anderson, Director of Finance at AdventHealth, said in a recent HealthLeaders webinar. “We also offer tuition assistance as part of our benefit package. That has been a really big part of our recruitment and retention strategy.”
Creating a culture that shows care for its workers’ well-being is critical. A LinkedIn study found that work-life balance, and flexible work arrangements are top concerns for healthcare workers. CFOs can work with CMOs and CNOs to ensure these opportunities are available to staff.
CFOs can also steer the strategy by ensuring there is financing available to offer mental health support and professional development. Inclusive policies also go a long way toward showing healthcare workers that they are valued partners, reducing job dissatisfaction and turnover.
Marie DeFreitas is the CFO editor for HealthLeaders.
KEY TAKEAWAYS
Private equity disruptors have a few specific targets in 2025 —often via joint ventures to avoid antitrust scrutiny.
CFOs are under pressure to allocate capital wisely, balancing post-pandemic project resumptions and tech upgrades with economic instability and innovation demands.
Physician and workforce engagement is critical to system success, requiring strong collaboration across leadership.