Health system leader survey respondents brace for 2025 shifts

Editor's Note

Health system leaders expect to face mounting physician challenges, shifting reimbursement models, and new growth opportunities throughout this year, according to VMG Health’s Health System Leader Expectations survey.

Based on responses from 73 health system leaders, the report highlights the sector’s key trends and priorities for 2025. Key takeaways include:

• Surveyed leaders ranked “expansion of provider networks” as their top physician strategy, reflecting persistent challenges with recruitment, retention, and alignment. Nearly 64% identified “mounting physician losses/subsidies” as their most significant physician alignment challenge.
• Financial performance remains robust despite staff challenges, with 77% of respondents crediting “increased utilization” as the main driver.
• Reimbursement is poised to evolve further in 2025, as 33% of health systems anticipate growth in risk-based payment models, and 23% foresee more Medicare Advantage contracts.
• Joint ventures present a mixed landscape, with leaders expressing interest in outpatient surgery (63%) and behavioral health (56%) partnerships, but only 28% considering private equity collaborations for traditional services like orthopedics and cardiology.
• Labor pressures appear to be easing compared to prior years, with only 49% citing clinical staffing shortages and contract labor as key operational challenges, down significantly from 77% last year. Additionally, 53% attribute easing labor pressure to positive financial performance trends.

Other details in the full survey report include leaders’ plans for investment, reflections on 2024 performance drivers, expected merger and acquisition activity, and more.