Research

The New Cost Mandate

    The New Cost Mandate

    At current course and speed, hospitals and health systems are quickly approaching financial unsustainability. Rapidly growing operating expenses and threats to revenue growth are putting tremendous pressure on margins.

    Providers already face threats to both volumes and prices, which will only intensify as a result of ongoing changes to payment policies, patient demographics, insurance benefits, and the competitive landscape. Combined, these trends reveal a long-term, revenue-driven margin challenge. As a result, hospitals and health systems need new strategies to effectively and sustainably slow operating expense growth to protect future margins.

    This research report unpacks the drivers of the emerging margin management challenge and provides a road map of strategic solutions for hospital and health system leaders.

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