The black box of healthcare costs will open

Chief Financial Officers will demand visibility—and finally get it.

For decades, CFOs have tracked and optimized every business expense except one: healthcare spending. Despite being their second-largest cost after payroll, healthcare spending has remained a mystery, hidden behind layers of complexity that obscure its true drivers.?

The challenge

Healthcare's "black box" persists because the industry has made complexity a feature, not a bug. "Every CFO looks at healthcare costs the same way," says Nomi Health Co-Founder and CEO Mark Newman. "They build an 8% increase into next year's budget because that's just what healthcare does - it goes up. When you can't see inside the black box, you can't do anything about it."??

Accepting inevitable increases isn't just a business problem - recent lawsuits against major employers show it's becoming a legal liability.?

Early signs of change

Real-time analytics and data transparency are shining a long-overdue light on healthcare spending patterns. CFOs are beginning to ask the same questions of healthcare that they ask about every other business expense: Where exactly is the money going? What value are we getting? How can we optimize this investment? With new tools and visibility, employers are moving from passive acceptance to active management of their healthcare spending.?

Proof in numbers

The power of transparency is already evident. For example, employers using transparent pharmacy programs are saving up to 30% on medication costs by leveraging better pricing and clinical programs. With a clearer picture of their total healthcare spending, employers can uncover inefficiencies and misaligned incentives that were previously invisible.?

Human impact

When employers understand their healthcare spending, everything improves. Human resource teams can design benefits that match their workforce's actual needs. Benefits administrators become advisors rather than gatekeepers. Data-driven decisions replace guesswork, ensuring healthcare dollars are spent where they matter most.?

2025 prediction

By 2025, scrutiny of healthcare spending will intensify, driven by rising costs and legal pressures. Employers won’t just access their data—they’ll use it to improve outcomes, manage costs more effectively, and mitigate legal risks. Those who embrace transparency will lead the way, proving that smarter spending can deliver better benefits for everyone.?

Read the full analysis: https://www.nomihealth.com/blog/healthcare-predictions-2025-the-power-of-pragmatic-change