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The healthcare industry finds itself in the eye of a storm. Recent business hardships are seemingly abating as health system finances improve, care teams adapt to new workforce norms, and macroeconomic indicators stabilize.

But the relative calm of this moment is deceptive. The dramatic return of deferred volumes, skyrocketing drug spending, and inflationary adjustments to network contracts reversed the comparative fortunes of health plans. Investors and regulators are tightening access to capital and transaction feasibility. Government purchasers are ramping up scrutiny on flexible payment policies. Long-anticipated demographic changes and treatment innovations are shifting utilization patterns away from high-margin procedures.

A much less forgiving business climate lies ahead, and pressure on healthcare spending will only grow. Increasingly, healthcare organizations are making tough choices about which assets and segments will best suit them in the future. Leaders are revisiting how they prioritize their topline growth — across revenues, influence, or scale — relative to their ability to secure sustainable margins.