Healthcare chief financial officers are shifting their strategic focus toward managing external disruptions, according to a Deloitte survey of 64 U.S. healthcare finance leaders, including 32 from health systems and 32 from health plans.
Regulatory changes, macroeconomic volatility and global supply chain instability have overtaken traditional concerns, such as workforce challenges and cybersecurity.
The study found 84% of finance leaders find business risks tied to potential regulatory and policy changes. Tariffs and drug pricing reforms are their top concerns. An additional 81% highlighted consumer affordability and trust as key issues.
“Potential new tariffs on prescription drugs, medical equipment and other medical supplies could increase hospital costs by 15% or more,” the report cautioned.
Finance leaders see these developments as more urgent than previously dominant concerns, such as labor shortages and digital threats.
The survey also shows CFOs are preparing for major policy shifts by evaluating their organizations’ exposure to trade policy changes. Tariffs and trade disruptions ranked highest among changes with the greatest expected impact.
WHY THIS MATTERS: WHAT'S BEEN TRIED
Despite ongoing emphasis on growth strategies – such as M&A activity, value-based contracts and strategic partnerships – few finance leaders reported significant returns from these initiatives.
While outsourcing noncore services offers the potential for up to 28% in cost savings, it remains underutilized. Just a quarter of health plan leaders and 16% of health system leaders said outsourcing is a current priority.
Adoption of transformative technologies like generative AI and cloud also varies. More than half (53%) of health systems reported strong impact from these tools, while 72% of health plans indicated moderate to no impact so far.
“As stewards and operators of both stability and agility, strong financial leadership from health care CFOs is important for remaining responsive in today’s environment,” the report concluded. “Their leadership is important, not only for maintaining financial health, but also for driving long-term growth.”
THE LARGER TREND
This latest Deloitte survey follows their June report revealing increasing concern among healthcare finance execs about the impact of economic and regulatory uncertainty on their organizations.
Nearly three-quarters of respondents expressed specific concerns about revenue growth and operating profitability. Additional challenges include rising healthcare costs, consumer affordability and financial strain from increased utilization — particularly within Medicare Advantage plans, where some leaders noted the medical loss ratio reached its highest level in years and could remain elevated through year-end.
Meanwhile, hospital financial performance is showing signs of improvement, despite ongoing policy uncertainty tied to tariffs, according to Kaufman Hall’s June Flash Report.
Median hospital margins rose to 3% in April, a slight increase from March, with nonprofit hospitals seeing particular gains. While tariff-related volatility continues to weigh on market conditions, the healthcare sector has maintained steady job growth throughout the year.