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Healthcare operates in a highly disrupted market with multiple headwinds, including ongoing staff shortages, financial pressures, policy and regulatory changes and cyber threats.
Disruption in the industry is most pronounced among clinical providers, according to the latest AlixPartners' survey of more than 3,000 global executives across 10 sectors. Tailoring solutions provided the foundation for a roundtable discussion we hosted at Becker's 2025 CEO + CFO event in Chicago.
The diverse group of health systems operators reflected a broader industry that's deep into transformation mode. Operators are seeking to integrate technological developments with the realities of a shifting payment and revenue landscape, as well as ongoing workforce challenges.
The wide-ranging discussion provided a framework for providers to assess their own progress in transformations that deliver uninterrupted patient care and avoid unintended consequences.
Key takeaways included:
- Flexibility is central to transformation. Some require wholesale organizational change, focused on operations, processes and the workforce, while others can benefit most from digital transformation that decreases the burden on clinicians. Some operators may be best served by a streamlined revenue cycle transformation that simplifies the patient experience.
- Internal buy-in and collaboration are essential. Regardless of the type of transformation a health system undertakes, there must be organizational alignment and the changes must be supported across departments. "Transformations need to be well coordinated for them to stick," Greg Magrisi, Partner & Managing Director in AlixPartners' healthcare practice, said at the event. "All of your leaders need to be in lockstep to make sure these transformations are the right fit."
- ROI may be indirect. For some processes, the return on investment cannot be fully captured in simple financial terms, although the transformation can still have tremendous value for the organization.
For example, AI scribes using ambient listening are gaining widespread adoption, promising increased efficiency and reduced errors. The returns on investment may not be immediate or directly related to cost savings – although providers directly replacing human scribes with AI have seen more bottom-line impact.
The primary benefit can be in workload management, which improves physician satisfaction and reduces the sometimes-chronic staff turnover. Outcomes are highly dependent on the physician compensation model, specialty, and adoption rate.
"It's more about improving retention and work-life balance, as well as reducing burnout. That may not be directly impacting the bottom line, but you need to trace that well," said Jerry Wang, Partner in AlixPartners' healthcare practice, during the roundtable.
The primary door
Technology is just one tool in the transformation of providers' operating models, which includes a targeted focus on expanding primary care options and diversifying revenue streams beyond a reliance on public payers.
Restructuring primary care and closing gaps in transitional support after patients leave a facility provides opportunities to build revenue and trust. This can include same-day appointment guarantees to improve access and establish patient loyalty. Health systems are also exploring strategies such as leasing beds in skilled nursing facilities to ensure a safe transition, provide continuity of care and prevent costly readmissions.
The landscape is shifting from pure competition to strategic collaboration. Health systems are increasingly open to joint ventures and partnerships to provide comprehensive care. Projects such as expanding clinical trial programs provide another path to diversifying revenue.
Leaders are intensely focused on optimizing and, in some cases, rationalizing their service lines, asking not only what services they should provide, but more importantly, where they should be provided to be most cost-effective and margin accretive.
A prominent strategy involves consolidating highly specialized services into regional centers of excellence that can improve quality and patient safety by concentrating volume and expertise while avoiding duplicative capital investments.
Originally published by Becker's Hospital Review .
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