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OBBB and beyond: Drive strategy with localized insights

Data & analytics
Financial sustainability
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As the dust settles following passage of the One Big Beautiful Bill Act (OBBB), the contours of a shifting healthcare landscape are taking shape. True, the industry has faced headwinds before but, as outlined in a recent article published by Vizient, never quite like this. Health system leaders need to anticipate impacts beyond what is immediately apparent and navigate an environment with a multitude of possible future states. To succeed, organizations will need to balance the needs of emerging challenges while continuing to identify and prioritize high-confidence, bold strategic bets to accelerate transformational change.

Strategy’s role: Anticipate, localize, prioritize, communicate

Complex. Overwhelming. Wait and see. We hear these phrases during conversations with client organizations on the topic of the current policy and payment landscape. Most leadership teams, having navigated pandemic-era disruptions, updated their tool kit to include enhanced signal monitoring, agile decision-making and stricter resource management. Though helpful in the past, these efforts won’t be sufficient moving forward.

Beyond the collective industry experience of first-order impacts — utilization disruption and financial pressure — seen in the early years of the COVID-19 pandemic, organizations expect the OBBB and future regulatory efforts to produce second- and third-order impacts that are not yet clearly identified or quantified. In response, an internal, multidisciplinary flywheel that combines signal gathering and scenario planning efforts with real-time business and clinical monitoring is needed to elevate each organization’s ability to pivot immediately. This full-field approach requires strategists, operators, clinicians and finance leaders to work together and leverage integrated data to chart a path forward.

Figure 1. Data-driven approach allows for enhanced strategic planning
Note: CDB = Vizient Clinical Data Base; CPSC = Clinical Practice Solutions Center®; IoC = Impact of Change®; M&A = mergers and acquisitions; CARE = Clinical Alignment and Resource Effectiveness. Sources: Vizient and Kaufman Hall Report: The more things change: navigating the next healthcare crisis under the One Big Beautiful Bill. July 18, 2025; CMS. Calendar Year 2026 Hospital Outpatient Prospective Payment System (OPPS) and Ambulatory Surgical Center Proposed Rule (CMS-1834-P) [fact sheet]. July 15, 2025; Health Resources and Services Administration. Fed Regist. 2025;90(146):36163–36165; Sg2 Analysis, 2025.
Key executive takeaways

Sg2 recommends leaders take the following steps to effectively anticipate and manage disruption.

  • Act now. Don’t wait for perfect clarity. Develop localized, actionable tactics that can be applied with confidence across a variety of scenarios.
  • Broaden focus. Evaluate clinical, operational and workforce implications — not just financial — across your System of CARE.
  • Prioritize boldly. Meeting the challenges posed in the current landscape requires accelerated transformation and maximized systemness. Make strategic choices that reflect your mission and are grounded in the communities you serve.
  • Communicate clearly. Ensure strategic intent is consistently shared across all levels.
Authors
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Brian Esser is a national thought leader focused on emerging topics impacting enterprise growth, scale and sustainability. He often speaks at industry conferences while engaging directly with management teams and boards on the evolving healthcare landscape and strategy formulation. Leveraging 15 years of experience, Esser’s areas of expertise include healthcare... Learn more
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Ryota Terada supports Sg2’s financial strategy thought leadership related to federal and state payment and policy dynamics, revenue growth, physician alignment and value-based care. In his current role, he supports health system executives and suppliers as they navigate an uncertain and rapidly evolving landscape through future-focused research and data insights... Learn more