The impact of OBBBA and how health system leaders respond
Funding cuts and other restrictions related to the OBBBA and other policy changes are projected to have an unprecedented impact on the healthcare industry. The healthcare system may result in an increase in uncompensated care, worsening patient health and lower selection procedures. At the same time, tariff volatility can affect the healthcare system's operating environment, immigration restrictions could deepen staffing shortages, and direct funding cuts could threaten research initiatives.
How these and other changes will affect individual health systems is not easy to predict. Some leaders use scenario planning tools to understand how policy changes will affect finances. It delays planning until the impact of laws and policies has subsided, focusing on a 3-6 month planning cycle or extending the planning window over the years.
Despite this uncertainty in the plan, health system leaders make difficult, short-term decisions to reduce costs and maintain margins.
