Begin this process by researching what health care organizations are doing or attempting to do to increase profitability. Remember, profitability can be improved from many different angles. A nonexclusive list of potential ways would be adding additional services, decreasing costs, increasing the amount of services that are provided, or implementing a quality improvement program that qualifies for incentive monies. Check trade journals or professional discussion boards, or reach out to existing health care managers.
Part 2: Literature Review
Perform a literature review of the solution that you have decided to apply to your organization. The review will encompass several articles, and at least 1 of the articles must be peer-reviewed. Look at current material (within the last 2 years).
Sample Answer
In 2026, healthcare organizations are facing an unprecedented intersection of rising costs (projected at 7-9% annually) and flat reimbursement rates. To maintain profitability, the strategic focus has shifted from simple volume growth to high-yield service expansion and AI-driven operational efficiency.In 2026, healthcare organizations are facing an unprecedented intersection of rising costs (projected at 7-9% annually) and flat reimbursement rates. To maintain profitability, the strategic focus has shifted from simple volume growth to high-yield service expansion and AI-driven operational efficiency.
Part 1: Strategies to Increase Profitability
Current research into top-tier health systems (e.g., Lee Health, Mayo Clinic) reveals four primary "levers" being pulled to stabilize the bottom line:
Migration to Ambulatory Care (Service Line Optimization): Organizations are aggressively moving high-margin procedures (orthopedic spine fusion, cardiovascular interventions) out of the expensive hospital setting and into Ambulatory Surgery Centers (ASCs). This reduces overhead and aligns with the CMS phase-out of the "inpatient-only" list.