At our third annual Roundtable event in Nashville, executives from across the healthcare ecosystem joined our healthcare advisory team for a discussion on the trends shaping the next chapter for this industry.
Across health systems, private equity, outpatient providers, and venture investors, several clear themes emerged: sustained policy uncertainty, disciplined capital allocation, accelerating digital adoption, and an employer market increasingly focused on ROI.
Below are ten key insights leaders can use as they plan for 2026 and beyond.
1. Policy Uncertainty Is Now a Core Strategic Variable
The policy environment—drug pricing reform, transparency mandates, and administrative actions—has moved from background consideration to primary strategic driver.
Executives shared that the year’s regulatory shifts created hesitation around large capital decisions and introduced new reimbursement volatility, particularly in Medicare and Medicaid.
Organizations are responding by:
- Stress-testing strategies for “stroke-of-the-pen” impacts
- Prioritizing investments with clear, near-term control
- Diversifying across markets, payor mix, and care settings
2. Capital Discipline Has Replaced the Leverage-Driven Playbook
With higher interest rates and tighter underwriting, the market has shifted decisively from leverage-driven returns to growth and operational performance.
Firms emphasized:
- Strong fundamentals over financial engineering
- A widening gap between A-tier and B-tier assets
- Heightened scrutiny on capital-intensive business models
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“About 40% of banker-led processes typically close, but in the last few years that dipped to 10–20%.” -LA Galleon, Brentwood Capital |
This shift reflects a market returning to fundamentals, with buyers prioritizing clarity of growth, operational rigor, and realistic valuations.
3. Capital Is Concentrating in Lower-Cost Sites of Care and Provider Enablement
Capital isn’t uniform across the healthcare market; it's moving toward the models with the strongest growth, scalability, and economic resilience. Several categories are standing out.
Lower-Cost Sites of Care
Demand continues to shift toward outpatient and home-based models—infusion centers, ASCs, hospital-at-home—driven by cost savings, capacity constraints, and patient preference.
Behavioral and Mental Health
Despite reimbursement complexity, behavioral health continues to attract investment due to unmet demand and opportunities for virtual and hybrid delivery.
Provider Efficiency & Revenue Cycle Tech
Tools that improve workflow, documentation, and revenue-cycle performance remain highly investable, particularly as staffing pressures persist.
4. Value-Based Care Remains Difficult to Scale
While the industry continues to champion value-based care, it remains challenging to execute at scale across most settings.
Key barriers include:
- Short patient tenure in many plans
- Limited longitudinal data
- Frequent program changes
- Misaligned incentives
Although integrated systems have shown promise, panelists agreed that broader adoption will require improved alignment and data maturity.
5. Digital Transformation Is Becoming a Margin Strategy
Digital investments are evolving from innovation-oriented projects into core levers for efficiency, workforce relief, and quality improvement. Several solutions highlighted have already demonstrated measurable performance improvements.
Virtual Nursing
Pilot programs showed meaningful workforce impact.
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“In our virtual nursing pilot, nurse turnover dropped from 15% to 9% in the first six months.” -Alfred Lumsdaine, CFO of Ardent Health |
This reduction reflects how targeted digital tools can alleviate administrative burden and improve staff retention.
Continuous Monitoring
Wearable monitoring devices have contributed to:
- Earlier detection of health risks
- Reduced mortality
- Shorter lengths of stay
- Better patient throughput
Ambient Listening & Documentation Automation
AI-supported documentation continues to improve provider efficiency, reducing administrative hours and accelerating clinical workflows.
6. Outpatient and Ambulatory Models Continue to Outperform
Outpatient care models continue to grow as cost-effective, patient-centric alternatives to hospital-based care.
Ambulatory infusion centers exemplify high-quality care that alleviates hospital capacity constraints and supports a better patient experience—gaining traction with payers and health systems alike.
7. Strategic Partnerships and Joint Ventures Are Accelerating Innovation
As healthcare organizations face rising labor costs, reimbursement pressure, and the need to modernize digital infrastructure, many are acknowledging a key strategic reality: not every capability can or should be built internally.
Partnerships and joint ventures are becoming essential tools for organizations seeking to increase operational efficiency, extend care delivery, and accelerate innovation without taking on disproportionate cost or risk.
Outsourcing Where Scale Matters
Several operational functions—particularly those that rely on large technology investments and sophisticated automation—perform more effectively at scale.
Revenue cycle management is a clear example. Organizations are increasingly partnering with specialized firms that can invest heavily in AI-driven automation, denial mitigation, and real-time analytics. Outsourced partners often deploy:
- Automated tools to address rising denial rates
- Advanced payer-interaction technologies
- Continuous platform enhancements without adding internal tech debt
Co-Development with Innovators
Partnerships are also evolving beyond outsourcing into true co-development.
Healthcare organizations are collaborating with earlier-stage and emerging technology companies to design, pilot, and refine tools directly inside clinical or operational workflows.
These collaborations are especially active in innovation-heavy markets where providers and tech companies are in close proximity. Examples include:
- Ambient listening and documentation automation tools tested in live clinical settings
- Virtual-care technologies refined through frontline provider feedback
- Continuous monitoring devices adapted for specific unit needs
This model benefits both sides:
- Providers get solutions shaped around real-world workflows
- Tech innovators gain rapid feedback, clinical validation, and scalable use cases
8. Data, Diligence and Readiness Are Now Non-Negotiable
Deal processes have become significantly more rigorous.
Sellers are responding by:
- Performing pre-diligence readiness checks
- Strengthening reporting and systems months before starting a process
- Conducting sell-side QoE and commercial reviews
Organizations that prepare early move faster, negotiate more effectively, and maintain stronger valuations.
9. Employers Are Becoming Active Purchasers, Not Passive Payers
Rising benefit costs are shifting benefits strategies from HR to the CFO’s office. Employers now expect quantifiable savings and rapid payback.
CFO-Led Decision Making
Financing decisions are increasingly focused on ROI, cost containment, and predictability.
Redesigning Health Plans
Transparent PBMs, reference-based pricing, and narrow networks are gaining traction, creating opportunities for providers aligned with value and cost transparency.
10. AI Adoption Is Growing But Requires Measured Expectation
AI continues to advance across administrative, operational, and clinical workflows. Panelists emphasized that while adoption is accelerating, practical use cases—not hype—will define the next decade.
Organizations are focusing on:
- Targeted administrative automation
- Ambient tools that reduce clinician burden
- Decision-support solutions integrated into workflows
Trust, validation, and thoughtful implementation will determine AI's success.
Looking Ahead
The discussion highlighted several durable themes:
- Policy and reimbursement uncertainty will persist
- Digital and operational readiness will be key differentiators
- Lower-cost care settings and provider-enablement technology will remain central to transformation
- Employers will continue driving demand for transparency and cost control
- AI will enhance operations, though adoption will be incremental and validated
At Embark, we continue to support healthcare organizations in navigating these shifts—from transaction readiness to finance transformation and digital enablement.
If you’d like to discuss how these trends may shape your strategy heading into 2026, our healthcare advisory team is here to help.
