Healthcare margins are under pressure.
We help fix that.

Optum Advisory's Margin Transformation practice partners with health systems to capture real, hard-dollar margin improvement across supply chain, revenue cycle, and workforce — without disrupting the care you deliver.

We are the consulting arm of Optum focused on practical, operator-led execution — not theoretical studies or one-time cost cutting.

Let's talk about your margin

The margin challenge is real.

~35%

of a hospital's operating expenses come from supplies and purchased services — yet it's often the last place they look for savings.

Source: Advisory Board
91%

of health systems say inflation and rising costs are their #1 financial challenge over the next 12 months.

Source: Premier Survey
~80%

of a health system's operating budget is workforce and supplies — two areas where margin pressure is most controllable.

Source: GHX / Advisory Board

Most health systems have already cut what they can. The next gains come from capturing savings that already exist and executing more consistently.

See how health systems are responding →

What we do

Supply Chain Advisory

We identify hard-dollar savings through strategic sourcing, contract renegotiation, GPO optimization, value analysis, and purchased services — without disrupting your operations.

Up to $197M in projected savings for a single health system partnership.

Learn more →

Revenue Cycle

From charge capture and clinical documentation to denials prevention and vendor management, we help protect every dollar you've already earned.

$19.2M in realized revenue benefit for one health system partnership.

Learn more →

Workforce Optimization

We help health systems right-size labor costs, reduce premium spend, and build sustainable staffing models — while protecting the people who deliver care.

$27.5M in projected labor productivity savings by year two.

Learn more →

Results that speak for themselves.

$0M

Realized revenue benefit — Large Health System Rev Cycle Partnership

$0M

Labor productivity savings projected — Workforce Optimization

$0M

Supply chain savings over 3 years — Health System in Maine

0

Clients would recommend Optum Advisory

Client success stories

Supply Chain

A health system in Maine achieved $32M over 3 year savings through a comprehensive supply chain transformation partnership.

Talk to our team about your situation →

Revenue Cycle

A Northeast health system delivered a 6:1 ROI and $19.2M in realized financial benefit through a performance partnership.

Talk to our team about your situation →

Workforce

A New England health system projected $27.5M in labor productivity savings by year two of its workforce engagement.

Talk to our team about your situation →

What we're thinking about

"Health systems are facing a painful paradox: volumes are recovering, but margins aren't. The organizations breaking through aren't just cutting — they're capturing revenue they've already earned and standardizing across supply chain, workforce, and revenue cycle at the same time."

Morgan Haines · LinkedIn Follow Morgan on LinkedIn →

"Healthcare supply chain leaders must act strategically, not reactively. Diversify your sources, review your contracts for tariff exposure, and standardize physician preference items. Systems that treat supply chain as a strategic lever will protect their margins. Those that wait won't."

Derek Kazahaya · LinkedIn Follow Derek on LinkedIn →
Featured in Advisory Board

Strategies to Improve Operating Margins and Financial Resilience

Morgan Haines and the Optum Advisory team contributed to this Advisory Board research on how health systems can close the margin/volume gap.

Read the article →
Follow us on LinkedIn →