Healthcare CFOs Prioritize M&A Amid Cost Pressures

Mergers and acquisitions are rising as a top strategic priority for U.S. healthcare finance leaders, who are balancing dealmaking with cost discipline, according to new survey data. The shift reflects broader economic optimism and a search for scale amid persistent pressures like labor costs and regulatory uncertainty.

The U.S. Bank CFO Insights report, based on a survey of 1,000 senior finance leaders, including about a third who are CFOs, shows 59% of respondents now expect M&A activity in their sector to increase over the next year, up from 46% in spring 2026. Similarly, 57% said they are more likely to pursue acquisitions, compared to 49% in the earlier survey.

Healthcare organizations are particularly focused on deals that address capabilities and scale, though reimbursement uncertainty and labor expenses continue to limit confidence. Joe Kight, head of healthcare at U.S. Bank, noted that leaders must weigh acquisitions against organic investments in technology and infrastructure to determine where capital yields the greatest long-term return.

Selective deals, such as those expanding outpatient or specialty services, can improve operational efficiency, but integration risks and sustainable returns remain key concerns. The survey also highlighted cost-cutting and efficiency as the top priority for 37% of respondents, followed by revenue growth (35%) and M&A (33%).

Economic sentiment has improved, with 68% of finance leaders now reporting a positive three-year outlook for the U.S., up from 58% in spring. However, technology spending, particularly on AI, presents challenges. 51% of respondents said AI tool expenses exceeded budgets last year, yet 72% are investing in AI and automation to boost productivity and manage inflation.

Larger companies reported stronger returns from AI investments, but success depends on tying spending to measurable outcomes. Eric Levine, head of healthcare payments at U.S. Bank, identified areas like payer correspondence, revenue cycle processes, patient billing and accounts payable as prime candidates for automation, where manual work and delays can be reduced. He recommended starting with high-volume workflows before scaling broader deployment.

Cash forecasting and liquidity management could also benefit from AI-driven insights, though Levine emphasized the need for robust data governance before delegating financial decisions. “Before organizations delegate liquidity or funding decisions, they need strong data governance, clearly defined authority limits, auditable decision trails and human approval,” he said.