Navigating Today’s Challenges: Key Questions for Health System CEOs in 2023

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Health System Challenges in 2025

Summer of 2025 presented health system leaders with a unique set of challenges stemming from evolving federal legislation and economic pressures. Here are seven key questions confronting them as the season ends and the effects of the One Big Beautiful bill Act (OBBBA) become clearer.1.Financial Impact of OBBBA: Despite extensive planning,the true financial impact of OBBBA remains unclear. Estimates suggest a $911 billion reduction in federal Medicaid spending and 10 million more uninsured Americans by 2034. no system anticipates a financial benefit, with the severity of the challenges dependent on state policies, market dynamics, and other local factors. added concerns include NIH funding cuts, tariffs, and inflation.2. Declining Influence of Health Systems:  Following proactive advocacy efforts,health system leaders found their influence waning. The customary methods of lobbying and coalition-building seem less effective, raising questions about how to shape policy outcomes.

3. Separating OBBBA-Driven Changes from Necessary Ones:  Health systems are reassessing strategies, and OBBBA may provide cover for changes already under consideration, like consolidating services, outsourcing to AI, or streamlining administrative roles. The challenge lies in transparently communicating the reasons behind these changes.

4. Leading Through Slow Decline: The impact of OBBBA is expected to be gradual, a "slow degradation of services year over year." This requires different leadership skills than managing acute crises, demanding sustained urgency and commitment during uncertain times.

5. Impact of ACA Premium Credit Expiration: the pending expiration of Affordable Care Act (ACA) premium tax credits presents an immediate concern.

6. 7 Key Questions: The article breaks down seven questions that health care ceos are currently facing.

7. Navigating Uncertainties: The challenges extend beyond OBBBA, encompassing broader economic pressures and the need for strategic adaptation.

Are we adequately investing in cybersecurity measures to protect patient data and systems from evolving threats?

The Evolving Healthcare Landscape: A CEO’s Viewpoint

The healthcare industry is in constant flux. 2023 presented a unique set of hurdles for health system CEOs – from financial pressures and workforce shortages to evolving patient expectations and the continued integration of technology. Proactive leadership requires asking the right questions now to build resilient, future-proof organizations. This article outlines critical areas of inquiry for healthcare leaders focused on strategic planning, operational efficiency, and patient-centered care.We’ll explore key considerations around healthcare leadership, hospital management, and digital health change.

Financial Sustainability & Revenue Cycle Management

Maintaining financial health is paramount. The economic climate substantially impacts healthcare organizations.

What is our true cost of care? Beyond conventional accounting,are we accurately capturing the full cost – including indirect expenses and the cost of poor quality? Cost accounting and value-based care models are crucial here.

How can we optimize our revenue cycle? Denial rates, coding accuracy, and patient collections all contribute to financial performance.Investing in revenue cycle management (RCM) technology and staff training is essential.

Are we maximizing opportunities for value-based contracts? Shifting from fee-for-service to value-based care requires robust data analytics and a commitment to population health management.

What diversification strategies should we explore? Consider non-clinical revenue streams, strategic partnerships, and expansion into new service lines. Healthcare mergers and acquisitions are also a consideration, but require careful due diligence.

Workforce Resilience & Talent Acquisition

The healthcare workforce crisis continues to be a major concern. Attracting and retaining qualified staff is vital.

What is our employee turnover rate, and what are the primary drivers? Exit interviews, employee surveys, and data analysis can reveal key pain points. Addressing healthcare burnout is critical.

How can we leverage technology to alleviate workforce burdens? Telehealth, artificial intelligence (AI), and robotic process automation (RPA) can automate tasks and free up clinicians to focus on patient care.

Are we investing in workforce development and training? upskilling and reskilling programs can address skill gaps and create career pathways for employees. Consider continuing medical education (CME) opportunities.

What innovative compensation and benefits packages can we offer? Beyond salary,consider student loan repayment assistance,childcare benefits,and flexible work arrangements. Healthcare human resources strategies need to be competitive.

Digital Transformation & Technology Adoption

Technology is reshaping healthcare delivery. CEOs must guide thier organizations through this transformation.

Is our electronic health record (EHR) system optimized for interoperability? Seamless data exchange is essential for coordinated care. Focus on HL7 standards and FHIR APIs.

How are we leveraging data analytics to improve clinical outcomes and operational efficiency? Healthcare analytics can identify trends, predict risks, and personalize care.

What is our strategy for cybersecurity and data privacy? Protecting patient data is paramount. Invest in robust security measures and ensure compliance with HIPAA regulations.

Are we exploring the potential of emerging technologies like AI and machine learning? These technologies can automate tasks,improve diagnostics,and personalize treatment plans.AI in healthcare is rapidly evolving.

How are we utilizing telehealth to expand access to care? Telemedicine and virtual care are becoming increasingly important, especially for rural and underserved populations.

Patient Experience & Engagement

Patients are increasingly demanding a more convenient, personalized, and engaging healthcare experience.

What is our Net Promoter Score (NPS), and how can we improve it? NPS measures patient loyalty and provides valuable feedback.

Are we offering convenient access to care through multiple channels? This includes online scheduling, virtual visits, and walk-in clinics. Patient portals are key.

How are we personalizing the patient experience? Tailoring care plans to individual needs and preferences can improve outcomes and satisfaction.

Are we actively soliciting patient feedback and using it to improve our services? Patient surveys, focus groups, and social media monitoring can provide valuable insights.Patient-centered care is the goal.

Regulatory Compliance & Risk Management

Navigating the complex regulatory landscape is a constant challenge.

Are we fully compliant with all applicable regulations? This includes HIPAA, Stark Law, and Anti-Kickback Statute.

What are our key risk areas, and how are we mitigating them? This includes clinical risk, financial risk, and reputational risk.

**Do we have a robust compliance program in place?