b'SUMMARYEarlier this year, DHG Healthcare conducted our annual Healthcare Executive Leadership Survey, MINDSETS, with responses from more than 80 healthcare leaders, representing organizations across the nation and ranging in sizefrom $250 Million to more than $10 Billion. Through this survey, we soughta deeper understanding of the key issues facing the industry to betterserve our clients most pressing needs. In this years survey, four mega-themes emerged aroundStrategy, People, Growth,and Value. STRATEGY GROWTHAs readers may expect, the COVID-19 pandemic forced more than half of respondents to pause strategic initiatives and, instead, focus scarce resources on patientConsolidation within the healthcare industry has accelerated in recent years and, notably, is taking place across the entire provider continuum, leading to care in their communities.However, 80 percent of those same leaders plan to refresh their enterprise strategies within the next twelve months in reaction to thegreater vertical integration and efficiencies. Additionally, the consolidation trend is no longer dominated by M&A activity of traditional providers. Private equity financial pressures and consumer preferences brought about by the pandemic. The dominant strategic issue both in the near-term as well as the long-term is theand payer-market alignment are investing in and influencing the realignment of programs. Our survey respondents believe industry growth will be fueled by Workforce of the Future, just ahead of financial stability.these types of consolidations via affiliations and innovative population health programs. As consolidation continues to accelerate, providers should expect more government oversight and regulations, so even if a merger makes business sense, the compliance aspect of the proposal may prove too daunting. Policy navigation will remain a critical facet of a providers business model moving forward, especially considering President Bidens recent signing of the Executive Order on Promoting Competition in the American Economy. This order will result in significant impacts to the healthcare industry and M&A activity. PEOPLEVALUEWith unprecedented levels of workforce fatigue and burnout, the threat of turnover and need for agility moving forward demands insightful, proactive, costWhile value-based care and the acceleration of risk had considerable momentum prior to the pandemic, more than half of survey respondents believe the responsible action today. More than 70 percent of MINDSETS respondents believe significant change agility will be required for success in the new normal.pandemic negatively impacted their value-based arrangements. Interestingly, in the face of that recognition, 85 percent of the respondents say that a strategic Approximately the same population indicates their organizations are experiencing significant change fatigue. Additionally, more than half think workforceneed for value-based arrangements is imperative for their organizations, likely recognizing the importance of alternative revenue streams tied to value. That turnover will rise well beyond historic averages and respondents are concerned about retaining team members long-term.To emphasize the impact of theseawareness combined with Washington D.C.s continued willingness to provide options for value and risk-based models allows healthcare organizations to evolve issues, the majority plan to review and enhance their employee benefit plans to address well-being.their readiness to adopt risk. This trend should continue as providers adopt some of the lessons learned from 2020. Assurance/Tax/Advisory/dhg.com 4 5 2021 Dixon Hughes Goodman LLP. All rights reserved. DHG is registered in the U.S. Patent and Trademark Office to Dixon Hughes Goodman LLP.'