Health systems continue to trend in a positive direction, with margins and investments trending upwards. However, financial indicators are mixed with health systems having less cash on hand compared to pre-pandemic norms and increasing costs mitigating margin recovery. Systems leaders are likely gearing up to press ahead with diversification efforts as high-margin ambulatory services are necessary to push margins towards more sustainable levels. Further margin improvements will enable leaders to tackle larger capital projects and focus on bigger strategic moves.​

ASC growth persists, with the acuity of volumes continuing to increase. The incidence of higher acuity cases performed in these settings is expected to continue, as overall share of surgical procedures also creeps up. Leaders face big questions about building or buying, how much ownership to retain, and how to best work with independent minded surgeon-owners. ASCs have organically developed a skepticism of anything built for the acute care market and tend to value long-term relationship building.​

Despite struggling with Medicare Advantage, the majority of CFOs indicate an increased investment. For some systems though, rising challenges with denials and preauthorization are causing them to abandon the business line altogether. CFOs and clinical leaders will continue to closely watch CMS rate changes as they evaluate how to serve seniors and maintain sustainable margins across MA and traditional Medicare.​

The proliferation of GLP-1s is expected to have a $300 billion impact on health spending. But concerns remain related to access and safety due to persistent shortages and unregulated compounding. Bariatric surgery remains more cost effective compared to a full cycle of GLP-1, with costs potentially rising when the shortage abates. Further, the rise of med spas and prescribing virtual care platforms have changed how consumers access therapeutics and medications, pulling them away from even the outpatient setting.​

Early Tech Investment data from THMA suggests CIOs continue to focus on partnership expansion rather than spend with new vendors. This comes as leaders focus on scalability, stability, and diversification across business lines entering 2025, and are considering how to optimize their suite of current tech platforms across their systems. Executives will be looking to put the right systems in place to suit their growth and optimization strategies but are likely to create a more rigorous buying cycle to prevent the potential accrual of added tech debt.​