Source: Modern Healthcare
Management consulting firms expect measurable growth in the healthcare sector, fueled by regulatory changes, economic constraints, ongoing workforce shortages and operational challenges.
A Modern Healthcare survey of management consulting firms nationwide, conducted July 7 through Aug. 8, found healthcare consulting is experiencing sustained growth, especially in areas such as data analytics, mergers and acquisitions, digital transformation and technology optimization. Respondents also addressed the biggest operational challenges from both the consultant and client perspectives.
Based on responses from nearly 30 management consulting firms, this report highlights current trends as well as firms’ outlook for the consulting and healthcare sectors in the coming year.
1. Core group of services sees rapid growth
According to survey respondents, a core set of offerings represents the fastest-growing service areas in healthcare. Operational and financial improvement leads the list, followed closely by data analytics, M&A and digital transformation/technology optimization.
Categories mentioned as “other” in the survey include real estate, telehealth and safety, each accounting for about 4% of respondents.
2. Use of AI also increasing demand
Artificial intelligence and data analytics are viewed as the leading innovations driving demand for healthcare consulting, according to the survey.
Mentions in the “other” category include payment accuracy, revenue cycle, life sciences (supply chain, commercialization, expert reports), and ambulatory surgery centers and anesthesia services consulting.
View the complete survey results
3. Finances, staffing among top operational challenges
When asked to name the top three operational concerns when assisting their healthcare clients, the most frequent responses involved workforce shortages, financial pressures and overcoming data system complexities.
“Healthcare organizations are under enormous pressure, financially and operationally. Staff are stretched thin and fatigued by constant change,” said Rahul Singh, national healthcare provider lead at West Monroe.
Jon Harol, founder of consulting firm Lighthouse Lab Services, widens the scope of the issue.
Workforce shortages not only hinder client operations but also strain consulting firms, which must allocate additional resources for recruitment, staffing support and training, he said.
Respondents also highlighted financial challenges affecting both clients and consulting firms.
Pressures are felt on multiple fronts, from clients seeking high-quality services despite reduced consulting budgets to firms managing rising salary and benefit costs, said Allie Freed, marketing and culture leader and owner at Freed Associates.
Providers and other healthcare organizations were likewise cited as facing significant fiscal strain.
“Margin and financial performance pose ongoing hurdles, particularly as organizations aim to improve revenue cycles and manage increasingly complex reimbursement structures,” according to Impact Advisors’ survey response.
Rounding out the three most frequently cited operational challenges is overcoming complex legacy data systems.
Data fragmentation creates strong demand for healthcare consulting, but it also presents the challenge of properly implementing solutions that are both scalable and sustainable going forward, said Maulik Bhagat, executive vice president and senior managing director at AArete.
4. More growth expected in 2026
Looking back at the August 2024 through July 2025 timeframe, two-thirds of respondents said demand for healthcare consulting services either significantly or slightly increased.
When asked about their outlook through 2026, several respondents said they expect continued growth in demand for healthcare consulting.
“Over the next 12 months, we expect the healthcare consulting industry to experience significant momentum, driven not only by ongoing operational and workforce challenges, but also by the sweeping changes introduced through the ‘One Big Beautiful Bill Act,’ ” said Chris Pritchard, healthcare industry leader and principal at Baker Tilly.
Respondents also see regulatory changes as key to growth in consulting.
Given the economic uncertainties and evolving rules at both the state and federal levels, we expect pronounced demand, said Marty Brown, president and CEO at PYA.
