2025 Health System Performance Outlook Report

This report presents the 2025 Health System Performance Outlook, focusing on the challenges faced by health systems amid financial pressures. It outlines key areas such as non-labor expenses, workforce optimization, and payer reimbursement issues. The report indicates that nearly 60% of respondents experienced non-labor expense increases between 6% to 10% over the past year, with many organizations forming tariff workgroups to manage these costs. Workforce strategies are highlighted, with 70% of organizations actively working to optimize staffing and over half exploring outsourcing options. Access to care remains a significant challenge, with 91% of respondents unable to accommodate patients promptly. The report also discusses the impact of payer reimbursement, particularly concerning Medicaid, and emphasizes the need for health systems to strengthen their operational foundations. It concludes by noting that these pressures require health systems to enhance their resilience and operational effectiveness for the future.