C-suite leaders, including hospital executives, are struggling to keep up with policy volatility as the federal government under the Trump administration rapidly reimagines economic and regulatory policies, according to a new PwC pulse survey.
The survey interviewed leaders across six industries, including healthcare. Sixty-one percent of healthcare leaders surveyed are rethinking their short-term business strategies due to what's going on in the economy.
Cyberattacks and workforce challenges top the list of healthcare industry concerns.
Forty-eight percent of all executives surveyed expect that uncertainty to last less than a year, but many anticipate it could extend through the next presidential election.
And yet, they see opportunity amidst the uncertainty: About 32% said there will be more opportunities a month from now, while 23% said there will be more challenges.
The No. 1 factor prompting strategic change over the next year or two is economic policy, with 48% ranking it in the top three.
The main areas in which companies are taking action are implementing cost reductions (62%), adjusting financial forecasts and budgets (59%) and diversifying suppliers (58%). Two thirds (65%) of the executives say they're renegotiating pricing with suppliers or plan to, and 60% are passing tariff-related costs on to customers or plan to.
More than half of the executives (57%) say that they're missing opportunities because they can't make decisions quickly enough.
WHAT'S THE IMPACT
Other factors driving short-term strategy shifts include artificial intelligence and data regulations (with 44% ranking it in the top 3) and U.S. trade policy (with 41% ranking it in the top 3). That's not surprising, the report authors said, because companies are investing heavily in AI and the regulatory landscape has become complex, with a patchwork of state-driven rules.
Looking at specific industries, respondents from consumer markets and industrial products companies rank trade policy higher, given their global supply chains and higher exposure to tariffs. Technology executives are more focused on AI and data regulation, PwC said.
Healthcare executives ranked U.S. economic policy as the top factor driving short-term strategic shifts (61%), followed by AI data and regulations (56%), U.S. trade policy (44%), federal government spending and budget policy (37%), and corporate tax policy (34%).
THE LARGER TREND
PwC said it's essential to have core skills in place looking ahead – like thinking through possible outcomes and building what-if scenarios so that when things shift, companies can respond quickly and confidently.
The authors also said it's important to have the capacity to quickly make data-driven decisions. Acting with confidence in the short term requires accurate, up-to-date data and processes built for speed, according to the survey.
Between May 1 and May 8, PwC surveyed 678 U.S. executives, including CFOs and finance leaders (12%); tax leaders (10%); risk management leaders, including CROs, CAEs and CISOs (12%); CIOs, CTOs and technology leaders (13%); CHROs and human capital leaders (12%); COOs and operations leaders (12%); corporate board directors (9%); CMOs and marketing leaders (12%); and CEOs (7%).
Respondents were from public and private companies in six industries: industrial products (29%), consumer markets (15%), financial services (20%), technology, media and telecom (15%), health industries (6%), energy and utilities (9%), and other (6%).
The Pulse Survey is conducted on a periodic basis to track the changing sentiment and priorities of business executives.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.