The Healthcare Margin Playbook: Five Levers That Actually Work

With reimbursement rates flat and labor costs rising, health systems need a new approach to margin management. Five evidence-based strategies.

Health system margins have been under pressure for a decade, but the post-pandemic environment has made it acute. Labor costs are up 20-30% in many markets. Reimbursement rates are flat or declining. And the traditional playbook — cut staff, defer capital, renegotiate contracts — has been exhausted. We've identified five levers that consistently deliver margin improvement without compromising care quality: labor productivity optimization, supply chain consolidation, revenue cycle acceleration, care model redesign, and strategic portfolio management.

At Meridian, we see these patterns across industries. The specifics vary, but the underlying dynamics are remarkably consistent. Organizations that succeed are the ones that treat transformation as a management discipline — with clear accountability, rigorous measurement, and the patience to see it through.

If you're facing a similar challenge, we'd welcome the conversation. Reach out to our team.