One effective strategy is leveraging technology to automate administrative tasks, allowing healthcare professionals to focus more on patient care. Telehealth and flexible scheduling have emerged as solutions to alleviate workforce pressures, offering providers the flexibility needed to maintain high-quality care while reducing burnout. Additionally, recruitment efforts must prioritize specialized professionals, particularly in high-demand fields such as behavioral health. Healthcare leaders must rethink traditional workforce models by incorporating cross-training opportunities and restructuring employment strategies to create a more adaptable and resilient labor force.
Strengthening managed care contracts for financial sustainability
Financial viability of healthcare organizations partially depends on their ability to negotiate effective managed care contracts. In 2025, the focus must shift towards strategic payer relationships that maximize reimbursement while ensuring sustainability. Many healthcare providers operate under outdated contract terms that fail to account for evolving payment models, leading to unfavorable financial outcomes.
To navigate this landscape, organizations should consider developing comprehensive payer scorecards or conducting a comparative review for each payer to measure contract effectiveness. It's important to be able to measure the health of the relationship. Price transparency tools can provide valuable insights, allowing providers to benchmark reimbursement rates against industry standards and identify areas for improvement. Additionally, alternative payment models that align with value-based care initiatives can create new opportunities for revenue generation while enhancing patient outcomes. By conducting thorough contract reviews and renegotiating outdated or unfavorable terms, organizations can strengthen financial sustainability and improve operational efficiency in healthcare.
Expanding services in senior care and behavioral health
Demographic shifts and evolving patient needs are driving increased demand for senior care and behavioral health services. The aging population presents both opportunities and challenges for healthcare providers, requiring innovative solutions for sustainable, effective care delivery.
One key behavioral health strategy is the continued growth of Certified Community Behavioral Health Clinics (CCBHCs) and behavioral health urgent care centers. More than 500 CCBHCs now operate across 46 states, Washington D.C., Guam and Puerto Rico, with 14 additional states and D.C. recently receiving grants to develop programs — underscoring strong momentum in behavioral health expansion.
Senior care is also transforming, as health systems seek to partner with organizations to facilitate the transition from acute to post-acute care. While assisted living and independent living occupancies have generally returned to pre-pandemic levels, nursing facilities continue to face financial pressures. Providers are reevaluating delivery models, continuing the shift toward home- and community-based care, right-sizing campuses and engaging boards and residents more deeply in strategic planning.
Looking ahead, providers in both sectors should be intentional about where and how they grow. Whether through affiliations, geographic expansion or new program and service offerings, success will depend on aligning services with evolving community needs and ensuring the operational and financial infrastructure is in place to support long-term viability.
Navigating private equity investments and regulatory changes
Private equity continues to play a prominent role in the healthcare landscape, particularly across outpatient care, behavioral health and home-based services. According to Private Equity Stakeholder Project cited more than 1,000 unique PE-backed healthcare deals, including 166 leveraged buyouts, 262 growth or expansion investments and 621 add-on acquisitions [2].
Baker Tilly’s Healthcare M&A Update – H2 2024 report confirms that healthcare M&A activity remains active, with 276 closed deals in the second half of 2024 alone. While overall volume dipped slightly from previous periods, deal value surged, driven by several large transactions exceeding $1 billion in enterprise value. Notably, healthcare IT and tuck-in hospital deals continue to draw strong interest from investors seeking scalable platforms.
Regulatory scrutiny over private equity transactions is intensifying, with agencies such as the Federal Trade Commission (FTC) and Department of Justice (DOJ) implementing measures to increase transparency in healthcare ownership and pricing models. Healthcare providers must stay informed about evolving regulations and develop strategies to manage capital investments while mitigating compliance risks. By proactively addressing regulatory requirements and aligning with best practices, organizations can navigate the complexities of private equity involvement while maintaining their operational integrity.
Looking ahead
Staying ahead requires a strategic approach that aligns with industry trends and regulatory developments. Leveraging technology, refining managed care contracts, addressing workforce challenges, expanding services and proactively managing compliance are all essential components of a successful healthcare strategy. Organizations that embrace innovation and adaptability will be best positioned to navigate the evolving healthcare landscape and achieve long-term sustainability.
At Baker Tilly, we understand the complexities of the healthcare industry and offer tailored advisory, assurance and tax solutions to help providers navigate these challenges. To learn more about how we can boost your operational efficiency in healthcare or support your organization, contact our dedicated team.