October 1, 2025
The Future of Healthcare: Challenges and Opportunities for a Healthier Workforce
By Marcia Sloan, Board Advisor, BizPower360
The U.S. healthcare system is facing unprecedented challenges. With over 25 years of experience in working with academic medical centers to secure quality healthcare and a margin, I’ve witnessed firsthand the financial pressures that have become increasingly burdensome for hospitals and independent practices especially primary care practices. As we navigate these turbulent times, it is essential to recognize the complex factors at play and the vital role that a healthier workforce can play in alleviating systemic strain.
Current Challenges in the Hospital Industry
The healthcare sector is experiencing a financial crisis, with hospitals and private practices grappling with budgetary challenges stemming from rising operational costs and stagnant reimbursements. Hospitals’ profit margins sharply dropped in 2022, with many facilities now operating at a loss. As noted in recent analyses, the conclusion of COVID-19's public health emergency and accompanying policy changes have exacerbated these challenges, particularly impacting Medicaid provisions. This has led to widespread layoffs, service reductions, and even closures, especially in rural communities where healthcare access is already limited.
From my experience, these challenges are intensified by a workforce that is both strained and shrinking. Many physicians are leaving independent practices for salaried positions to escape the financial instability and administrative burdens associated with private practice. This shift not only reduces options for patients but adds to the pressure on hospitals that remain.
Financial Strain: A Harbinger of Change
The situation for healthcare providers remains precarious, with projections suggesting that operating margins may continue to flatten or decline through 2028 unless significant reforms or cost reductions are implemented. Medicare and Medicaid underpayments contribute significantly to this financial strain, creating an unsustainable cycle of operational challenges.
Data from Cleveland Clinic illustrates this financial roller coaster: while the organization experienced steady growth pre-COVID, it faced dramatic dips during the pandemic, followed by a brief rebound in 2021. However, the margin squeeze in 2022-2023—caused by rising costs and delayed reimbursements—underscores the urgent need for long-term strategies that focus on financial sustainability.
The Role of a Healthier Workforce
A healthier workforce could significantly alleviate the pressures on our healthcare system. By investing in employee wellness and preventive care initiatives, businesses can help reduce overall healthcare costs. Healthier employees tend to have fewer medical interventions, lowering the financial burden on hospitals and healthcare providers, and ultimately leading to improved insurance affordability for individuals.
Moreover, a productive workforce is critical to economic growth. With improved health, employees are less likely to take sick days, leading to enhanced output and efficiency in business operations. As individuals maintain their health, the reliance on public assistance programs like Medicaid can diminish, enabling the government to allocate resources more effectively.
Government Support for Employer-Led Health Initiatives
To foster a healthier workforce, policies should support employers looking to enhance employee health. This can take form in several ways:
1.
Incentives for Health Programs:
The government should offer tax incentives or subsidies to employers who invest in workplace wellness initiatives and preventive care measures.
2.
Streamlining Regulations:
Simplifying compliance requirements related to workplace health can encourage businesses to retain and grow their workforce without overwhelming bureaucratic hurdles.
3.
Support for Good Jobs:
Establishing policies that make it feasible for employers to provide competitive wages is also essential. A workforce that earns livable wages is more likely to experience positive health outcomes, reducing dependency on social services.
4.
Investment in Community Health:
By funding public health initiatives, the government can contribute to the development of a healthier population, ultimately reducing the strain on healthcare providers.
5.
Collaboration Among Leadership:
Human resources, CEOs, and CFOs must work collaboratively to support initiatives that empower employees to engage in programs enhancing their quality of life. Providing access to tools and resources that reduce stress, such as mental health support, flexible work arrangements, and wellness programs, is crucial for fostering a healthier workforce. This collaboration will not only improve employee engagement and satisfaction but also contribute to better overall health outcomes, directly benefiting the organization.
With more than 25 years of experience advising academic medical centers on balancing quality care with financial sustainability, Marcia Sloan brings a seasoned perspective to the healthcare challenges of today. In her role as Board Advisor to BizPower360, she continues to apply that expertise to solutions that help employers strengthen workforce health while navigating financial and regulatory pressures. BizPower360’s BizPower Benefits program reflects this mission—supporting companies in creating healthier, more engaged employees and offering practical tools that align with the broader goal of building a more resilient healthcare system.
Conclusion
As we look ahead, the challenges facing the U.S. healthcare system are significant but not insurmountable. By prioritizing a healthier workforce and supporting employer initiatives, we can create a more resilient healthcare landscape. Collaboration among government, businesses, and healthcare providers is vital to ensure that as Americans, we not only survive these challenges but thrive in a healthier, more sustainable future. As professionals dedicated to healthcare, let us advocate for the changes necessary to support our workforce—and in turn, the well-being of our nation.