Since the start of 2025, there have already been significant changes in US healthcare policies and funding. The wide-ranging implications include Centers for Medicare and Medicaid Innovation (CMMI) model changes, federal funding cuts and updates to health equity initiatives due to Executive Order 14151, which targets diversity, equity and inclusion (DEI).
Petauri Kinect’s Population Health Leaders Network (PHLN) met recently to discuss these changes and their impact on healthcare organizations. Key opinion leaders emphasized the need for sustainable models, collaborative strategies and innovative approaches to address these changes, while maintaining a commitment to improving health outcomes and reducing costs.
Here are our PHLN leaders’ insights into 3 of the biggest shifts in the US healthcare landscape:
Several CMMI models have been terminated early, including Primary Care First, End-Stage Renal Disease Treatment Choices and the Maryland Total Cost of Care model. Acknowledging the uncertainty this creates in the healthcare landscape, PHLN leaders also highlighted a shift toward more sustainable models like the Medicare Shared Savings Program (MSSP). Examples of state-specific challenges included Virginia’s dependency on federal funding to care for its racially diverse population and Maryland’s focus on hypertension control programs for African Americans. These examples underscored the importance of tailoring strategies to local needs while navigating shifts in funding allocations and transitions to new Centers for Medicare and Medicaid Services (CMS) programs.
Key Takeaway: Health systems remain focused on value-based care and are looking for alternative payment models to engage.
Federal funding cuts pose significant risks to health systems, particularly in underserved and racially diverse communities. Given the local impact of healthcare on communities, PHLN leaders noted that these cuts have also started activating local politicians, citing examples like Hampton Roads, VA, where local politicians prioritize health initiatives as part of their campaigns. Given their reliance on federal funding for primary care and behavioral health programs, health systems in underserved and racially diverse communities need to explore alternative income streams, partnerships and innovative funding strategies to ensure the sustainability of health initiatives, especially in rural and transient populations.
Key Takeaway: The federal funding cuts have created an impetus to break down healthcare silos and explore new partnerships to help better serve communities.
The DEI executive order made organizations examine their policies and language to ensure they comply with government regulations. This requirement has prompted shifts in language related to health equity such as “non-medical drivers of health” replacing “social determinants of health (SDOH).” Many organizations remain committed to health equity but are navigating challenges like accessing resources, adapting to new grant requirements and balancing the transition between fee-for-service and value-based care models. PHLN leaders emphasized the importance of industry and pharma support to sustain innovation, reduce costs and address disparities, particularly in rural and underserved areas.
Key Takeaway: Many health systems continue to view health equity and improving health outcomes for all as a critical element of care delivery. They are looking closely at how to position these initiatives and partnerships to help achieve them.
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