The current policy environment is both highly uncertain and uniquely impactful on health system finances, with a wide range of potential changes ahead that will layer on top of recent disruptions. Regulatory proposals like Medicaid work requirements and site-neutral payments could decrease revenues, while executive action on tariffs and immigration enforcement could increase costs.

Health system leaders need to assess the impact of a range of different policies — and their severity — on their organizations. That’s why Advisory Board’s data and analytics team has constructed a scenario planning model to estimate the impact of different policy drivers on hospitals and health systems of different sizes. We use data from Syntellis Market Insights to model the impact of scenarios on median operating margin.