New FTI Consulting Survey Reveals Mounting Challenges Continue for U.S. Hospitals

Rhea-AI Summary

FTI Consulting's latest Hospital Operations Outlook Survey reveals significant challenges facing U.S. hospitals. The survey of 200+ senior hospital executives highlights several critical issues: - Workforce Challenges: 34% cite recruitment and staffing costs as major stressors, with 48% feeling unprepared for current patient volumes - Cybersecurity Concerns: 50% identify this as their top digital concern - Value-Based Care Transition: 42% of patient populations now participate in these models, with 91% reporting improved outcomes - Financial Pressures: Hospitals face mounting costs, regulatory changes, and potential Medicaid cuts The survey emphasizes the need for hospitals to adapt through digital innovation, workforce investment, and proactive cybersecurity measures while maintaining clear stakeholder communication.

Positive

• 91% of hospitals report better care coordination and improved patient outcomes with value-based care models
• 42% of patient populations now participate in value-based care models, showing significant adoption
• Hospitals are actively investing in digital innovation and modern infrastructure

Negative

• 34% of hospitals face critical financial stress from recruitment, retention, and staffing costs
• 50% of hospitals identify cybersecurity threats as their primary digital concern
• 48% of hospitals feel unprepared for current patient volumes due to workforce shortages
• Hospitals face potential Medicaid cuts from the federal government

WASHINGTON, May 15, 2025 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced findings from its annual Hospital Operations Outlook Survey of more than 200 senior executives across all types of hospitals. The survey found rising costs, patient wait times, workforce challenges and persistent cybersecurity threats are among the top issues highlighted by hospital leaders.

These issues — bundled with an increasingly complex operating environment shaped by regulatory changes, such as potential Medicaid cuts from the federal government, inflationary pressures and growing patient demand — make adaptability and nimbleness in an organization’s ability to quickly respond to these challenges critical. Moreover, clear and strategic communications to stakeholders about the mounting pressures and plans to address them are more important than ever to maintain support inside and outside the hospital.

To protect their reputation and fulfill their mission, hospital leaders must stay closely connected with stakeholders while embracing value-based care, digital innovation, workforce investment and proactive cybersecurity risk mitigation as part of a broader strategic plan.

“Healthcare leaders are at a crossroads, juggling financial pressures with the need to deliver high-quality care, support hospital staff and improve patient outcomes,” said Lauren Crawford Shaver, Head of Healthcare & Life Sciences for the Americas within the Strategic Communications segment at FTI Consulting. “At the same time, adaptation to the digital era demands investment in modern infrastructure, robust cybersecurity and AI-driven efficiencies. And with the regulatory landscape in constant flux, staying ahead requires more than strategy and vision. It takes agility to lead in a world that won’t stand still.”

Key findings from the survey:

• Workforce management costs dominate financial concerns, with 34% of respondents citing recruitment, retention and agency staffing expenses as critical stressors.
  
• Cybersecurity threats remain top of mind, identified by half of respondents (50%) as their top digital concern, driven primarily by the concern for potential data breaches and operational disruptions.
  
• Workforce shortages persist, with 48% of executives feeling their hospitals are unprepared for current patient volumes, particularly in specialist (49%) and nursing roles (46%).
• Hospitals continue shifting toward value-based care, with hospitals reporting 42% of patient populations now participate in value-based care models due to better care coordination and improved patient outcomes as reported by 91% of respondents.

“Hospital executives are seeing promising, sustainable results when it comes to value-based care. This model is increasingly viewed as a smart, strategic approach in today's evolving healthcare environment given ongoing challenges such as market pressures and a shifting regulatory landscape,” said Paul Dioguardi, a Managing Director in FTI Consulting’s Healthcare Risk Management & Advisory practice.

“In today’s fast-evolving healthcare landscape, hospital leaders must make decisions that build resilient organizations,” said Rebecca Ayer Pitt, a Managing Director in FTI Consulting’s Corporate Reputation practice within the Strategic Communications segment. “This means investing in their workforce and value-based care as well as strengthening digital and cybersecurity capabilities. Most importantly, communicating proactively and transparently about strategic decisions and actions will build and maintain stakeholder confidence and support. In doing so, health systems will be better positioned to face the demands of the current healthcare environment without losing sight of what matters most — delivering exceptional care and patient outcomes.”

About the Survey
This research was conducted online by FTI Consulting’s Strategic Communications segment between March 3, 2025 and March 12, 2025, with more than 200 senior executives across all types of hospitals and 17 mid-level leaders of academic hospitals. Overall, 60 respondents represent academic hospitals, 96 are part of a health system and 47 are hospitals not affiliated with health systems.

“FTI Consulting's Hospital Operations Outlook Survey offers healthcare leaders valuable insights into the headwinds and tailwinds being experienced by hospital and health system executives,” said James Condon, a Managing Director and Head of Research for the Americas in the Strategic Communications segment at FTI Consulting. “The survey is designed to provide a holistic perspective on current industry pressures, and highlights innovative, forward-thinking, technology-driven solutions that are being leveraged by hospitals to adapt to and overcome these hardships.”

The full survey report is available here.

About FTI Consulting
FTI Consulting, Inc. is a leading global expert firm for organizations facing crisis and transformation, with more than 8,100 employees located in 33 countries and territories as of March 31, 2025. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. The Company generated $3.70 billion in revenues during fiscal year 2024. More information can be found at www.fticonsulting.com.

FTI Consulting, Inc.
555 12^th Street NW
Washington, DC 20004
+1.202.312.9100

Investor Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com

Media Contact:
Matthew Bashalany
+1.617.897.1545
matthew.bashalany@fticonsulting.com

FAQ

What are the main challenges facing U.S. hospitals in 2025 according to FTI Consulting's survey?

The main challenges include workforce management costs (34% cite as critical), cybersecurity threats (50% top digital concern), staff shortages (48% unprepared for patient volumes), and potential Medicaid cuts.

How many hospital executives participated in FCN's 2025 Hospital Operations Survey?

The survey included more than 200 senior executives across various types of hospitals.

What percentage of hospitals are participating in value-based care models in 2025?

According to the survey, 42% of patient populations now participate in value-based care models, with 91% of respondents reporting better care coordination and improved patient outcomes.

What is the biggest digital concern for hospitals according to FTI Consulting's 2025 survey?

Cybersecurity threats are the top digital concern, identified by 50% of respondents, primarily due to concerns about potential data breaches and operational disruptions.

What are the main workforce challenges hospitals face in 2025?

Hospitals face significant workforce shortages, with 48% feeling unprepared for current patient volumes, particularly in specialist (49%) and nursing roles (46%). Additionally, 34% cite recruitment, retention, and agency staffing expenses as critical financial stressors.