Executive summary
Healthcare organizations are entering 2026 amid unprecedented pressures. Financial strains remain acute. The future of the Affordable Care Act and funding mechanisms are uncertain, supply and drug costs are rising, margins are tightening, and uncompensated care is growing.
Key challenges facing healthcare organizations include:
Together, these unique forces are reshaping healthcare organizations’ risk exposure while intensifying workforce cost and retention challenges.
The market for directors and officers liability (D&O) is segmented, with distressed systems facing double-digit premium increases and stricter terms. Professional liability remains challenging, particularly for senior living and physicians' groups, as nuclear verdicts and sexual misconduct claims drive increased costs. Cyber insurance pricing has stabilized but remains difficult for healthcare providers given their attractiveness to threat actors.
Meanwhile, healthcare organizations are navigating significant cost pressures as they work to meet evolving workforce needs. They face the challenge of delivering quality, cost-effective care amid growing patient demand, a sicker population, and policy changes, while also managing rising benefit costs and competing to attract and retain talent in a challenging market.
As the environment shifts and business models are under increasing strain, healthcare organizations must move beyond legacy approaches and rethink how they balance margin protection, risk management, and workforce demands.
This calls for a more proactive, enterprise-wide approach that looks beyond individual initiatives and considers how financial strategy, risk exposure, workforce planning, technology governance, and operational resilience intersect. Organizations that take a holistic view by strengthening governance, applying greater discipline to benefits and care investments, leveraging data and scenario planning, and embedding continuity planning across the enterprise will be better positioned to navigate volatility, support long-term stability, and sustain performance as conditions continue to evolve.
© 2026 Lockton Companies. All rights reserved.