Health Systems Need Scale to Survive, U.S. Bank Leader Says
Summary
Healthcare finance leaders are focusing on digital transformation and cost management to modernize health systems amid complex financial challenges. Many are turning to mergers and acquisitions to gain the scale needed to afford new technology and improve efficiency.Key Facts
- CFOs in healthcare are taking on strategic roles, including advising on AI and forecasting financial impacts.
- Digital transformation is ranked as the second-highest priority by healthcare finance leaders, with 38% naming it a top focus.
- Measuring the return on investment (ROI) for AI is difficult; only 42% of tracked AI projects show positive returns.
- About 64% of healthcare finance leaders plan to make acquisitions in the next year, more than any other industry.
- Many healthcare organizations are also looking to buy smaller companies (bolt-on acquisitions) or sell parts of their business (divestitures).
- The cost of new technology is high, making larger scale important to manage expenses.
- Mergers and acquisitions in health systems have increased significantly over the past two years.
- Despite challenges, over 60% of healthcare finance leaders have a positive economic outlook for the next three years.
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