| The skinny
During a Tuesday panel at the HFMA Annual Conference in National Harbor, Maryland, two veteran healthcare credit analysts said they think the window for deliberate strategic action is closing faster than most health system leaders realize. This urgency stems from a stark demographic reality. In 2030, the last of the Baby Boomer generation will officially reach age 65 and become Medicare-eligible. This is the same year that the most significant cuts from the federal budget reconciliation legislation will begin to bite. There is more than $1 trillion in Medicaid and Medicare cuts embedded in the One Big Beautiful Bill Act — so hospitals’ reimbursement is going to get squeezed even further at precisely the moment they will be caring for their largest and most expensive patient population in history. Soundbite
“2030 scares me to death,” said Kevin Holloran, senior director of nonprofit healthcare group at Fitch Ratings. “Right when you get fewer people in the workforce, you're going to see your payer mix decline. You're going to go from commercial to Medicare — and you're not going to have enough people, as they've left the workforce.” How tech/AI fits in
Dan Steingart, associate managing director at Moody’s Ratings noted AI is advancing so quickly that health systems relying on their traditional pace of change to catch up are already falling behind. He pointed specifically to revenue cycle coding and supply chain as areas ripe for disruption, with new models constantly emerging to make these processes more efficient. Beyond AI, Steingart added that the health systems best positioned for the future will be those that master digital patient engagement. As younger, app-native generations enter their peak healthcare consuming years, he said the bar for a seamless patient experience is rising — and the gap between the hospitals that can deliver this and those that can’t is stark. — By Katie Adams |
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