As healthcare practitioners, it’s easy to assume that economic trends and predictions have little to do with your day-to-day work. However, that assumption can lead to missed opportunities and even financial pitfalls. Understanding economic forecasting isn’t just for Wall Street—it’s essential for anyone running a healthcare practice or working in the industry.
I recently attended the Annual Economic Outlook at The Executives Club of Chicago, where top economists shared their predictions for 2025. Here are some highlights:
• S&P closing at 50,000
• Massive corporate tax breaks
• Double-digit earnings growth
• Tariffs causing lumber prices to skyrocket, making home affordability a challenge by summer 2025
• AI driving a resurgence of nuclear energy
• Best investment bet for $100K? Small-cap stocks and home-building supplies
• Planes and stores are full, and inflation is at a normal level
At first glance, these predictions might seem irrelevant to your work. But here’s why they matter: the economy influences consumer behavior, healthcare access, and business operations in ways that directly impact your bottom line.
A Lesson from 2022: Leveraging Economic Trends
In 2022, the instability in commercial real estate was a game-changer for savvy healthcare business owners. Many commercial real estate loans were up for renewal just as interest rates hit historic highs, making refinancing prohibitively expensive. As a result, office space rentals plummeted in price. It was so bad, a mantra emerged “stay alive till ‘25”a which meant for (corporate real estate holders) just survive this time until 2025, when interest rates should be lower. Basically: All you have to do is not go bankrupt on this property before you can refinance in 2025.
Knowing this, I negotiated a lease for several large, corner-window offices at $400 per month, in an area where similar spaces cost $1,500 per month in prior years. Conversely, I watched as other healthcare providers who came to this same space to rent an office —unaware of this economic trend—and paid the full ticket price. Either they didn’t know about the economy or they didn’t know how to negotiate. But I know we have 3,000 more a month because of that negotiation.
Knowing what is happening in our economy is essential for outpatient healthcare providers and here’s why:
How the 2025 Forecast Impacts Healthcare
Here’s a breakdown of how the current economic predictions could influence your healthcare practice:
1. S&P Closing at 50,000 & Double-Digit Earnings Growth
• Impact: A strong stock market and corporate earnings can indicate higher consumer confidence and spending. Patients may feel more comfortable investing in their health, including elective procedures and wellness services. Conversely, if the market overinflates and crashes, cosmic healthcare spending could decline and spending on mental health would likely increase.
2. Massive Corporate Tax Breaks
• Impact: Tax incentives could increase employer-sponsored healthcare benefits. If you have an S or C corp, you’ll benefit from those tax breaks. From there you can decide what to do – give raises? Lower rates? Help more people? Hire?
3. Catastrophic Events (wildfires) + Tariffs Causing Lumber Prices to Skyrocket
• Impact: Rising lumber costs mean fewer affordable homes, forcing families to prioritize essentials over healthcare. This could reduce patient volumes for non-urgent care.Economists predict that by summer, either incomes will need to increase by 60% or interest rates will need to drop to 2.2% for buyers to afford the same house they could purchase today.
• What You Can Do: Focus marketing efforts on value-driven care and essential health services. If your an owner who might buy a home in 2025, you might want to do that now, not later.
4. AI and the Resurgence of Nuclear Energy
• Impact: As AI reshapes industries, it may lead to shifts in employment patterns. A resurgence of nuclear energy to power AI, might bring jobs to specific regions, creating opportunities for healthcare expansion in underserved areas. It also means AI isn’t going anywhere. If you’re not using AI… you are, and you just don’t know it (check out the phone you’re on right now) and yes, you’re going to be seeing more of it. Get on board or get left behind.
• What You Can Do: Stay flexible and consider geographic expansion if your patient base shifts due to economic trends. Work with us to discover how AI can help your workflow and save you money.
5. Planes Are Full, Stores Are Full, Inflation Is at a Normal Level
• Impact: A healthy economy could mean more travel and consumer spending, which often correlates with an uptick in stress-related health issues.
• What You Can Do: Highlight mental health services, stress management programs, and wellness offerings in your marketing campaigns.
6. Best Investment Bet in 2025: Small-Cap Stocks & Home-Building Supplies / Home Builders.
• Impact: If home-building supplies are poised for growth, healthcare providers in growing suburban or rural areas might see increased patient populations. Small cap refers to companies with small capital – 250 million to 2 Billion. That probably isn’t you BUT this does impact you. Smaller S and C Corps will grow the most because of the incoming tax breaks will impact them more than large companies. Where would $1000 a month more in earnings be felt the most- a company making 200,000 a year or a company making 2 billion?
• What You Can Do: Consider expanding or marketing in these regions to capitalize on population growth. If you’re making more than 200k a year, you should have a CPA anyway. If you don’t, get one to have them review things and possibly convert to an S corp. LLCs are pass throughs so they do not see the same savings that an S corp will. Ensure your CPA specializes in your business type. They specialize just like healthcare providers!
Recommendations to Stay Informed
• Follow Economic Trends: Subscribe to economic reports, attend local or national economic forums, and regularly review news that impacts consumer behavior.
• Partner with Experts: Work with us! We understand and can align your business strategy with economic realities.
Our team of experts attends these types of events weekly, across the nation, which connect us with top economists, activists, politicians, CEOs of healthcare insurers, top accounting and law firms, and more! Partnering with experts who understand the nuances of healthcare economics can make all the difference. Explore advanced consulting solutions to grow your healthcare practice. As we gain insight, so do you. As we gain new legal, corporate, or financial strategies, so do you..
• Adapt Quickly: Stay agile. Whether it’s renegotiating leases, adjusting pricing, or expanding services, make decisions based on informed predictions rather than assumptions.
• Educate Yourself: Read up and follow economic channels or journals. Staying agile in leadership is key to thriving in a changing economy. Develop leadership skills with our Neuro-inclusive Leadership program.
The Bottom Line
Economic forecasting isn’t just for economists or investors. It’s a powerful tool for healthcare practitioners to understand how market shifts influence patient behavior, operational costs, and opportunities for growth. By staying informed, you can make strategic decisions that set your practice apart from others who remain in the dark.
Staying ahead of economic trends isn’t just about being a smarter business owner—it’s about providing exceptional care while ensuring your practice thrives. Partner with us to stay informed, adapt strategically, and make decisions that elevate both your business and the care you deliver.
