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ACCESS Newswire
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Black Book Research: Health Systems Race to Secure Expert Guidance as Medicaid Budget Cuts Loom - Black Book Flash Poll

Legislative Threats to Medicaid Funding Drive 300+ Vulnerable Hospitals to Reevaluate Financial Resilience, Operations, and Community Impact

WASHINGTON, DC / ACCESS Newswire / July 2, 2025 / Responding to escalating fiscal pressures resulting from anticipated Medicaid reimbursement cuts, Black Book Research today released a flash poll reaffirming its 2025 rankings of healthcare advisory firms most capable of guiding hospitals reliant on Medicaid through strategic planning and critical operational adjustments.

Given the heightened vulnerability of providers which derive considerable revenue from Medicaid, identifying the five most impactful advisory firm engagements has become crucial. "Without proactive strategic support, these hospitals face a substantial risk of severe financial distress or closure, significantly impacting community health services and the patients who rely on them," said Doug Brown, Founder of Black Book.

Approximately 300 U.S. hospitals, primarily safety-net, rural, children's, and specialty facilities, are estimated to derive 30% or more of their revenue from Medicaid in 2025. These providers are particularly vulnerable to Medicaid reimbursement cuts.

All US hospitals already rely significantly on Medicaid funds, averaging about 14.6% of revenue nationwide. Given the scale of potential impact, these institutions urgently require focused strategic support to manage anticipated financial disruptions and continue serving vulnerable populations effectively.

A recent targeted Black Book flash survey of 40 hospital administrators identified five essential strategic priorities for health systems deriving 15% or more of their revenue from Medicaid, pairing each priority with top-rated advisory firms based on client satisfaction, proven outcomes, and effectiveness in Medicaid-driven engagements.

The advisory firm rankings are based on extensive surveys involving more than 4,000 healthcare executives, CFOs, and strategic planners from Q4 2024 to Q2 2025 and have been available to view and download the complete report at the Black Book website for no charge to industry stakeholders since March 2025.

5 Essential Strategies for Medicaid-Dependent Health Systems and Their Top-Rated 2025 Advisory Firms:

1. Financial Vulnerability Assessment & Resiliency Planning

Top-Rated Consultant: Kaufman Hall

Hospitals must prepare rigorously for Medicaid funding reductions through detailed financial scenario modeling, proactive cost containment strategies, and reevaluation of service-line profitability. Kaufman Hall emerged as the highest-rated firm, recognized for its expertise in providing swift, actionable insights, precise risk forecasting, and tailored financial recovery strategies that align effectively with the unique fiscal demands of safety-net institutions.

2. Operational Efficiency & Cost Structure Transformation

Top-Rated Consultant: Huron Consulting Group

Hospitals facing significant reimbursement reductions must optimize their operational efficiencies and cost structures. Huron Consulting Group was recognized for its success in reshaping operations, identifying significant cost-saving opportunities, streamlining clinical workflows, and implementing sustainable productivity improvements to effectively absorb Medicaid revenue reductions.

3. Medicaid Policy, Advocacy & Stakeholder Engagement

Top-Rated Consultant: Leavitt Partners

Proactive engagement with Medicaid agencies, managed care organizations, and legislative stakeholders is vital to sustaining stable reimbursement streams. Leavitt Partners earned top honors due to their extensive network of policy experts, robust relationships within state governments, and proven capability in forming provider coalitions. Clients highly praised Leavitt Partners' strategic guidance in interpreting regulatory developments and effectively influencing policy outcomes favorable to hospitals.

4. Payer Mix Diversification & Revenue Optimization

Top-Rated Consultant: Deloitte

Reducing Medicaid dependence requires strategic diversification into services and market segments with higher commercial reimbursement potential. Deloitte was recognized for excellence by hospitals aiming to expand outpatient capacity, introduce commercially successful specialty services, and modernize payer engagement strategies. Deloitte's data-driven methodologies and strong implementation capabilities received particular commendation from clients.

5. Community-Based Coverage Expansion & Medicaid Redetermination Preparedness

Top-Rated Consultant: Chartis Group

With millions of patients facing Medicaid eligibility redetermination and potential disenrollment, hospitals must secure continuous coverage within their communities. Chartis Group received the highest client recognition for successfully assisting hospitals in developing scalable coverage retention programs, forging partnerships with Federally Qualified Health Centers (FQHCs) and Community-Based Organizations (CBOs), and deploying digital outreach solutions. Chartis was particularly noted for its integration of community-centric strategies with sophisticated analytics to minimize coverage disruptions.

__________

These strategic frameworks and advisory rankings are featured in the 2025 Black Book of Healthcare IT Consultants and Advisory Firms, providing in-depth data and insights on 260 HIT management consulting organizations. This resource is available free to hospitals, health systems, and healthcare providers impacted by Medicaid policy shifts. Download the full report at https://blackbookmarketresearch.com/2025-black-book-of-healthcare-it-consultants-and-advisory-firms Black Book maintains a rigorous, independent methodology, strictly prohibiting vendor sponsorships or advertisements to ensure unbiased, credible client experiences.

"Hospitals reliant on Medicaid are entering an era marked by unprecedented financial challenges, including impending reimbursement cuts, complex patient churn due to redetermination processes, and inflexible managed care rates," said Brown. "The advisory firms highlighted in this report are not merely supportive resources; they represent essential partnerships. Their proven strategies, measurable outcomes, and deep Medicaid policy expertise are indispensable for hospitals aiming to navigate this turbulent landscape successfully."

About Black Book Research

Black Book is a leading independent source for peer-validated performance rankings of consulting, advisory, and IT vendor organizations since 2004. Utilizing robust internal, partner-based panels, and extensive crowdsourced polling, Black Book has engaged, in particular, more than 3.3 million healthcare professionals since 2011, maintaining steadfast dedication to transparency, accuracy, and independence without vendor or advisory firm influence. Black Book maintains a rigorous, independent methodology, strictly prohibiting vendor sponsorships or association partnerships to ensure unbiased, credible client experiences. For more information, contact research@blackbookmarketresearch.com or visit www.blackbookmarketresearch.com.

Contact Information

Press Office
research@blackbookmarketresearch.com
8008637590

.

SOURCE: Black Book Research



View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/healthcare-and-pharmaceutical/health-systems-race-to-secure-expert-guidance-as-medicaid-budget-cuts-1045206

© 2025 ACCESS Newswire
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