The healthcare landscape in 2025 is marked by a complex interplay of financial pressures, persistent workforce shortages, and rapid technological advancements. While healthcare providers have stabilized post-pandemic, they face shrinking revenues coupled with escalating workforce expense, which now comprise a significant portion of total expenses.

This financial strain, combined with a projected shortage of hundreds of thousands of care providers, necessitates a renewed focus on strategic investment and innovative solutions. As a result, 2025 is poised to be a pivotal year for healthcare.
 

EMERGING & CONTINUING TRENDS FOR 2025:

Culture Management Focus in Mergers & Acquisitions

~70%-90% average rate of failure for M&As across all industries¹

Increased healthcare mergers and acquisitions, particularly with non-traditional players, will drive a major trend in 2025, necessitating a focus on cultural integration.

• M&A activity in healthcare is increasing, with deal value rising
• Cultural misalignment is a major factor in M&A failures
• Assessing cultural fit early and throughout the M&A process is crucial for success
• Providers transacting with non-traditional players (payors, tech, private equity) increases cultural misalignment risk
• Healthcare leaders must broaden cultural assessments to include both organizational and individual factors

Upskilling in an AI Healthcare Environment

94% healthcare companies report using AI/machine learning in some capacity²

The rapid adoption of AI in healthcare will drive a major trend towards increased upskilling and training programs for healthcare workforces.

• AI applications are expanding in areas like claims processing, personalized treatment, and fraud detection
• Further AI growth is expected in clinical tasks, patient service, and administrative functions
• Upskilling is essential for healthcare professionals to effectively utilize AI and adapt to their evolving roles
• Organizations must provide transparency about AI implementation and support employee retraining efforts

Demand for Senior Care Providers

711,700 home health aide jobs predicted to be added annually over the next decade³

The increasing demand for home healthcare services due to an aging population will require workforce expansion and adaptation in this sector.

• Significant job growth (21%) in home healthcare services is expected by 2031
• Demographic shifts are increasing demand for long-term care
• Existing staffing shortages will worsen with increased demand
• Recruitment and retention strategies in home healthcare must improve
• Wage growth in elderly care and related fields is expected to continue
• Technology (AI, remote monitoring) may be needed to address shortages

Expansion of Third-Party Shared Services

~70% of all healthcare companies outsource at least one business process⁴

Investment in third-party shared services organizations will continue in 2025 as healthcare providers seek efficiency and specialized expertise.

• Shared services centralize support functions (HR, finance, IT) to improve efficiency and provide cost savings.
• Outsourcing allows for improved services without investment in training and onboarding.
• Continuous monitoring, audits, and incident response plans are crucial when partnering with vendors.

Rise of the Healthcare Gig Economy

1400% growth in nurses moving to gig work models in 2023⁵

A significant shift towards gig work is poised to reshape the workforce landscape in 2025, driven by both organizational needs and evolving professional preferences.

• Gig work in healthcare, especially among nurses, has seen substantial recent growth
• The gig economy offers cost-effective staffing solutions for leaders and improved work-life balance for employees
• It provides flexibility for fluctuating patient volumes and seasonal staffing needs
• Thorough credential verification and compliance are crucial for gig worker hiring

Limited Options for Foreign National Healthcare Workers

18% of healthcare workers in the US are foreign-born⁶

An increased enforcement on immigration compliance following the administration change will place additional strain on healthcare employers

• Increased scrutiny and slower processing times will force employers to allocate more resources towards foreign worker regulatory compliance
• Reduced issuance of H-1 visas for nurses and technical positions will exacerbate an existing resource gap
• Employers’ portfolio of foreign worker options will become unstable 

Citations:
¹ Christensen et al., “The Big Idea.”
² Stott, “27 AI in Healthcare Statistics in 2025.”
³ “The Growing Demand for Home Care Services in Today’s Aging Population.”
⁴ “Understanding Healthcare Outsourcing.”
⁵ Wyman, Baggot, and Hamory, “Healthcare Workers Moving to Gig Work in Record Numbers.”
⁶ Zimmer, “Immigration as a Solution to Healthcare Workforce Shortages - Niskanen Center.”