• 60% of healthcare leaders express optimism about industry growth in 2025
• Private equity investments in healthcare reached a record $87 billion in 2024, a 15% increase from 2023
• Telehealth adoption in home care has surged, with 60% of home health visits now incorporating virtual care solutions
• 72% of health systems are exploring or implementing AI solutions for operational efficiency
• Healthcare costs are expected to rise by approximately 8% for both group and individual markets
• Over 90% of healthcare organizations experienced at least one cyberattack, with 70% affecting patient care and resulting in significant financial losses

Additionally, hospitals face mounting pressures to reduce costs

• Medicare reimbursement slated to be cut
• Rising labor costs
• Supply chain waste and costs are up
• Operational inefficiencies such as duplicate testing and inefficient patient flow

1. Market Recalibration:

• Optimize portfolio & market position through M&A
• Capitalize on outpatient expansion, digital health, and diversified care models
• Collaborate with health systems, payers, and tech firms
• Utilize patient experience analytics, digital front doors, and omnichannel engagement mode

2. Margin Rescue:

• Rationalize underperforming service lines
• Data-driven dynamic pricing & value-based reimbursement
• Reduce admin costs and improve operational throughput

3. Financial Resilience:

• Reduce wasteful spending
• Enhance financial visibility
• Optimize third-party relationships

4. Accelerated AI Adoption:

• Enhance AI Infrastructure
• Automate claims processing, revenue cycle etc.
• Streamline clinical workflows through AI

5. Platform Modernization:

• Seamless data exchange between hospitals, payers, and providers
• Digital health e.g. telemedicine, RPM, and AI-bots for care delivery
• AI-powered clinical workflows, robotics-assisted surgeries, and RTLS
• Real-time low-latency health data processing

6. Cyber Resilience for aging infrastructure:

• Vendor AI-risk assessments
• Secure infrastructure

1. Capability-Based Operating Models

• Standardize enterprise fundamentals (e.g., service capabilities, product catalog)
• Design enterprise workflows and metamodels to improve operational efficiency
• Establish governance frameworks to ensure stronger end-to-end accountability
• Re-align the business and supporting functions to market-facing capabilities

2. Visibility

• Establish an enterprise-wide single source of truth
• Direct and indirect cost drivers and spending patterns
• Estimate the total-cost-of-ownership, ROI, service levels, and KPIs
• Modularize underlying operating model
• Evergreen data room designed for scenario analyses and M&A synergies estimation

3. Efficiency

• Spin off underperformance business lines & operations
• Optimize the operating model
• Streamline third party agreements. Eliminate waste
• Rationalize apps and re-platform to streamline operations
• Automate operations
• Re-align workforce to an AI-first business model

4. Flexibility & Scalability

Ability to respond quickly to market shifts, operational disruptions, and M&A:

• Streamlined modular, flexible third party agreements, with manageable dependencies
• Simplified scalable tech stack that can be modularized and integrated as needed
• Re-aligned build vs. buy decisions
• Scalable IT architecture that supports seamless integration of new tools, platforms, or services
• Data-enabled workforce re-alignment

5. Partnership-based Ecosystems

• Deal strategy and opportunity pipeline management
• Due diligence, structuring agreements and more
• Stabilize deals and retain business continuity
• Value Creation through workforce, suppliers, operational frameworks, infrastructure and governance