The Future of Health Systems: Consolidation, Technology, and a New Operating Model

The Future of Health Systems: Consolidation, Technology, and a New Operating Model

US health systems are adapting to deliver increasingly complex care while optimizing resource utilization. However, they face a confluence of challenges, including cost pressures, clinician and staff shortages, regulatory burdens, an aging population, rising chronic disease prevalence, and the increasing cost of care.  To navigate these challenges, the healthcare delivery landscape is undergoing a rapid reconfiguration, characterized by consolidation, vertical integration, and hospital closures. The study reveals that a significant number of health systems have engaged in mergers and acquisitions in recent years, and this trend is expected to continue. 

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Technology and innovative operating models are identified as critical for successful consolidation. Health system leaders see technology as essential for both clinical and business operations, with a growing emphasis on the potential of AI.  


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