Healthcare System Incentives Misaligned, Report Found

A new Trilliant Health report details systemic issues affecting patient outcomes and provider margins.

Updated on Oct. 7, 2026 in Healthcare

Healthcare System Incentives Misaligned, Report Found

Live Poll

Is the U.S. healthcare system currently prioritizing corporate profits over patient outcomes?

Trilliant Health released a report on October 6, 2026, showing that 70% of Americans believe the healthcare system is currently in crisis. The findings suggest that industry actors are frequently incentivized to prioritize individual revenue over collective patient health.

Why it matters

The analysis highlights that current systemic structures, including CMS quality measures, often fail to correlate with actual patient outcomes. This misalignment creates financial incentives that favor for-profit entities over long-term population health goals.

In 2023, for-profit hospices reported a 13.7% Medicare margin compared to a -1.3% margin for nonprofits, while only 27% of the 800 active CMS quality measures are tied to specific health outcomes.

The players

Trilliant Health

This is a healthcare analytics company that provides data-driven research on market trends and clinical performance.

CMS

The Centers for Medicare & Medicaid Services is the federal agency that administers the nation's major healthcare programs.

The details

The report highlights a trend toward profit-driven care, noting that for-profit hospices increased by 11.2% between 2019 and 2024 while nonprofit counterparts declined by 2%. Furthermore, usage data shows 6.4% of children were taking five or more medications in 2025, and workforce projections indicate physician supply will only meet 87.7% of demand by 2038.

2019-2024 saw a 11.2% rise in for-profit hospices and a 2% fall in nonprofits.
Medicare margins for hospices were recorded for the 2023 fiscal year.
Data regarding medication usage in children was tracked through 2025.
Trilliant Health officially released the report on October 6, 2026.

Market Landscape

This analysis contrasts with the established goals of the CMS Quality Payment Program by demonstrating that current regulatory frameworks still struggle to prioritize outcome-based care. The data indicates a significant market shift toward for-profit service models that may exacerbate these systemic misalignments.

Consumers may face higher costs or redirected care options as the industry increasingly favors for-profit providers in segments like hospice. Patients should be aware that the current regulatory focus on volume-based metrics may not always reflect their personal health goals.

The takeaway

Patients should actively monitor the quality measures used by their providers to ensure care is focused on outcomes rather than service volume. Understanding these systemic incentives can help individuals better navigate their choices within the current healthcare landscape.