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Continue LogoutThe healthcare industry is at a critical turning point. Customers and funders are increasingly exhausted by rising costs and inconsistent experiences, while public and political support is eroding. The industry's traditional, incremental, and point-solution approach to change is failing to address the compounding impacts of today’s multifaceted challenges and the pace at which our customers, payers, and providers expect systems to evolve.
These shifting dynamics are not the result of a single disruptor, but rather due to long-held assumptions about access, spend management, and care decision-making that appear to be unraveling.
In our forthcoming webinar series, The State of the Healthcare Industry in 2026, experts from Advisory Board and Optum will take a deep dive into these unraveling assumptions, unpack what's driving them, and show leaders how to respond with clarity and purpose.
Below, the presenters of these three webinars explain how healthcare leaders will need to adapt to succeed in 2026.
Wes Campbell and Sasha Preble
The U.S. healthcare system has long relied on the government to grant a baseline subsidy to private providers, making it financially viable for them to create a collective safety net, effectively underwriting community health as a public good. That safety net goes beyond coverage to include access to care (both rural and urban), the role of academic medical centers, and the impact of pharmacy. But new federal policies, most notably the One Big Beautiful Bill Act (OBBBA), will create a generational rollback of this safety net and the funding sources that support it.
...new federal policies, most notably the One Big Beautiful Bill Act (OBBBA), will create a generational rollback of this safety net and the funding sources that support it.
With Social Security and Medicare essentially untouchable during legislative negotiations, Medicaid shouldered the majority of the cuts in the form of stricter eligibility requirements and overall reductions in funding. These reductions will bring significant increases in uninsured (or underinsured) patients — and uncompensated care for providers.
Healthcare providers cannot solve this issue alone. Responding to these reductions will require partnerships with community organizations and local market support systems. Moreover, healthcare and non-healthcare providers must come together to address the needs of underserved community members. Healthcare leaders must define what part of the problem they own and address root cause issues in the process.
In a new webinar on Jan. 8 at 1 p.m. ET, we’ll take a deep dive into:
We will then unpack what it will take from all of us to create a patchwork system that works for both the people who need care and the organizations who deliver it.
Jocelyn Herrington and Vikas Garg
A perfect storm of medical spending continues to drive up costs for purchasers, challenging traditional management tools like prior authorization and referral requirements. These cost increases are fueled by structural shifts in utilization, greater uptake of specialty services, and providers seeking higher reimbursements. Health plans find themselves caught between strained providers, price-sensitive employers, and diminishing returns from old cost-control tactics.
Health plans find themselves caught between strained providers, price-sensitive employers, and diminishing returns from old cost-control tactics.
Beyond costs, the landscape of care decisions is rapidly evolving. Behavioral health utilization has skyrocketed post-pandemic, thanks to expanded telehealth access. Yet, defining quality care in this space remains ambiguous for purchasers. This void is being filled by entrenched behavioral health tech platforms that are now positioned to impose measurement-based care standards and drive more definitive outcomes. Simultaneously, variable copay plans are gaining traction among employers desperate to bend the cost curve. These plans aim to steer members at the service level by exposing them to prices reflecting clinical value, quality, and cost. Such innovations could profoundly alter future network contracting dynamics, making service-specific rates more crucial than broad organizational averages.
Join us for a webinar on Jan. 15 at 1 p.m. ET, where we’ll continue the discussion on:
Rae Woods, Morghen Philippi, and Carol Chouinard
The traditional way care decisions are made is undergoing a profound transformation. Clinicians are no longer the primary decision-makers, maintaining close relationships with patients but exercising significant autonomy. Today’s healthcare consumers have higher expectations for their experience, but they don’t trust the traditional system to follow through. Rising dissatisfaction and declining trust coupled with new advisors ranging from social media to the latest chatbot influence which treatments are viable and appealing. Clinicians have their own new advisors, as vendors and AI companies embed their protocols into clinical workflows.
Today’s healthcare consumers have higher expectations for their experience, but they don’t trust the traditional system to follow through.
For providers, this perceived loss of authority can create defensiveness, which risks pushing patients further away toward new sources of information and treatment. Healthcare providers must acknowledge that patients often have valid reasons for feeling discarded or ignored by the healthcare system, and that the structure of traditional care delivery, with its long wait times and 15-minute appointments, has opened the door for patients to explore unconventional sources for advice and opinions. Simply put: The first step to combatting distrust and misinformation is understanding and accepting the healthcare system’s role in it. The next step is working to earn back patients’ trust.
AI is the elephant in the room when we talk about new care decision-makers. It can be part of the problem or part of the solution, but it is not a savior on its own. Healthcare leaders cannot assume that the tech can simply be changed to influence patients in a certain direction. AI that works for patients and providers requires clinician involvement in the design and implementation stages. Provider expertise is essential to ensure generative AI systems can offer patients information that aligns with the care delivery options that are best for them.
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