How To Navigate The Big Federal Budget Cuts

In this episode, Dan Czech, Vice President of Insights at KLAS, and my colleague Mark Ewrich, Chief Strategy Officer at Health Launchpad, and I discuss a  “Must-Read” study, “Navigating the Uncertainty of Federal Policy 2025.”

Dan and his team at KLAS surveyed almost 170 healthcare organizations to understand how they're responding to recent federal policy changes and budget uncertainties.

In this week’s episode, you will learn how healthcare organizations are navigating through shifting federal policies without clear direction. The study reveals that 90% of organizations feel they lack the clarity needed to act decisively, and 85% have developed multiple contingency plans to respond to policy changes.

Dan, Mark, I talked through the five key themes from this study. They have significant implications for healthcare technology vendors. Most surprisingly, despite all the uncertainty, IT budgets aren't being frozen - they're being redirected toward specific priorities like AI, automation, and cybersecurity. Organizations are looking for solutions that can help them reduce workforce costs while maintaining the quality of care.

Mark provides insightful commentary throughout our discussion on how healthcare technology companies should position themselves in this environment - focusing on de-risking solutions, demonstrating clear ROI, and aligning with the specific areas where organizations are still willing to invest.

This study is essential reading for anyone selling into healthcare right now, as it provides a roadmap for understanding where opportunities still exist despite the challenging environment.

Key Topics Covered:

• (00:00:00) Introduction 

• (00:02:00) Contingency Planning

• (00:05:00) Theme 1: Planning Through the Fog

• (00:07:00) Theme 2: Policy Shifts Drive Hard Choices

• (00:11:00) Theme 3: IT Budgets Redirected, Not Frozen

• (00:15:00) Theme 4: AI as the Bright Spot

• (00:19:00) Theme 5: Value-Based Care Momentum

• (00:24:00) Theme 6: Small Organizations at Greater Risk

• (00:26:00) Closing Thoughts and Takeaways

KLAS Report: Government and Regulatory Impact on Healthcare Delivery Organizations 2025

Want to learn more about planning for changing regulations? Explore this topic in greater depth in our detailed blog post. We provide a dozen actionable best practices. Check it out.

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