Despite a challenging few years, healthcare leaders are relatively optimistic about the economy and their financial performance for the year ahead.
Our 2023 Business Leaders Outlook survey gathered feedback from leaders of midsize healthcare organizations — those with annual revenues between $20 million and $500 million. The results show that just under half (48%) of healthcare executives have an optimistic outlook about the national economy. That’s a dramatically more upbeat position than the findings across all U.S. industries, where only 22% are optimistic about the national economy.
A commanding 91% of respondents expect to maintain or increase their revenue and sales this year, and 87% expect to maintain or increase profits—even as 58% expect a recession in 2023.
The survey also reflects the consumer-driven transformation happening in healthcare. Nine in 10 industry leaders identified at least one way they plan to evolve beyond their traditional models, with a majority considering in-home care (52%) and virtual care (51%).
On the labor front, 76% of respondents said they plan to maintain or add to their headcount. More than half (56%) of businesses are taking steps to optimize their working capital, and 38% are broadening their staffing strategy to maintain margins.
Cybersecurity and fraud remain a widespread threat to the healthcare industry. More than two-thirds (71%) of those surveyed indicated they have been directly impacted by cyberattacks in the last six months.
Healthcare leaders are significantly more optimistic about the national and local economy than U.S. survey respondents across all industries.
More than nine in 10 healthcare executives (91%) expect their revenues to hold steady or increase in 2023. An even greater percentage (94%) expect their capital expenditures to remain the same or increase.
Healthcare leaders generally don’t expect many changes due to recent elections.
Healthcare organizations face a variety of challenges today. Among them: inflation, snarled supply chains and a shortage of available workers.
Healthcare leaders are finding innovative ways to deliver alternative methods of care and re-engage consumers in a post-pandemic environment.
Started in 2011, the annual and midyear Business Leaders Outlook survey series provides snapshots of the challenges and opportunities facing executives of midsize companies in the United States.
This year, 791 respondents completed the online survey between Nov. 29 to Dec. 13, 2022. Additionally, 405 respondents with general annual revenue between $20 million and $500 million were recruited via online survey panels. These additional respondents were recruited to achieve readable base sizes for the healthcare industry. Results are within statistical parameters for validity; the error rate is plus or minus 8.2% at the 95% confidence interval.
Note: Some numbers may not equal 100% due to rounding.
Head of Healthcare, Higher Education and Nonprofit, Middle Market Banking & Specialized Industries Commercial Banking, J.P. Morgan
Co-Head of Healthcare, Middle Market Banking & Specialized Industries Commercial Banking, J.P. Morgan
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for disclosures and disclaimers related to this content.