Healthcare leaders are facing unprecedented financial pressure. With rising costs from tariffs on medical imports and Medicare reimbursement cuts straining margins, hospital executives—from CFOs to COOs and CNOs—are being forced to make hard decisions.
But there is a way forward. While supply costs may be out of your control, your workforce strategy isn’t.
Tariffs: Unavoidable Cost Pressures
- New tariffs on medical devices, pharma ingredients, and supplies are driving up operating costs.
- Hospitals like Providence Health project $10–25 million/year in added costs.
- COOs and CFOs are delaying capital purchases, freezing hiring, and diversifying supply chains.
- Tariffs disproportionately affect procedural and inpatient services that rely on imported tools.
Medicare Cuts: Revenue Under Siege
- Recent CMS updates reduce reimbursements for many services, especially in rural and non-profit hospitals.
- CFOs are seeing tighter margins while labor and supply costs continue to rise.
- Cuts reduce revenue predictability and force leaders to reassess every cost center—including labor.
The Converging Crisis
Together, tariffs and Medicare cuts represent a one-two punch:
- Increased cost to operate
- Reduced revenue from reimbursement
- Leaders must shift from reactive cost-cutting to strategic optimization.
How HWL Helps Leaders Respond
- Workforce Cost Containment
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- Real-time data dashboards uncover inefficiencies across contingent labor spend.
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- Vendor consolidation eliminates redundancy and improves contract terms.
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- Internal flex staffing models reduce reliance on high-cost agency labor.
- Revenue Protection Through Strategic Staffing
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- HWL ensures right staff, right place, right time—supporting throughput and revenue capture.
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- Predictive analytics prevent costly understaffing or overuse of premium labor.
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- Custom tech platforms align labor with operational goals.
- Administrative Relief and Compliance
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- Third-party payroll and MSP services reduce overhead for already overburdened finance teams.
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- Simplified invoicing, auditing, and reporting free up internal resources.
- Scalable, Flexible Solutions
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- Whether it’s insourcing support or full-suite VMS management, HWL solutions grow as your needs evolve.
Bottom Line for Healthcare Executives
While Washington debates trade and reimbursement policy, healthcare systems must act now. HWL offers control, visibility, and relief—where you still have power: your workforce. Ready to take back control of your workforce strategy? Contact us today.