From the continued orthopedic outpatient migration and increased independence for orthopedic groups to navigating growing demand for orthopedic services with tighter margins, there is a lot that orthopedic surgeons and leaders have on their plate in 2026.
As the IPO list continues to shrink, orthopedic groups have to think more about their care models, optimizing care delivery and being one step ahead of the next big shifts.
Patrick Magallanes, CEO and president of North Liberty, Iowa-based Steindler Orthopedics, recently connected with Becker’s to share eight key themes that could define the orthopedic space this year.
Note: This response was lightly edited for clarity and length.
Question: What do you believe will be the defining trends/themes for the orthopedic industry in 2026?
Patrick Magallanes: Orthopedic care is undergoing a major transformation in 2026, evidenced by the number of orthopedic procedures removed from the In-Patient Only list on Jan. 1. But it is far more than the cost of transforming orthopedic and spine care. The entire care continuum is shifting toward outpatient care, efficiency and value without compromising safety or outcomes. It is why we started planning for an ASC in 2020 and opened it last year. I believe advances in orthopedic and spine care delivery, changes in payment policy and rising patient expectations are combining to reshape where care is delivered and how it is experienced.
Orthopedic and spine care is increasingly moving out of hospitals
Evidenced by the procedures removed from the IPO list (with more to come), procedures that once required hospital inpatient admission are increasingly being performed safely in outpatient surgery centers, resulting in lower costs, shorter stays, faster recovery and a more predictable experience for patients.
Reduced reliance on hospitals strengthens orthopedic and spine group independence while benefiting the healthcare system
As more orthopedic procedures safely move to outpatient settings, orthopedic practices are becoming less dependent on hospital operating rooms and inpatient capacity. For independent groups like Steindler, this means greater independence, flexibility and control over scheduling, staffing and patient experience as we deliver more efficient, predictable care outside the hospital.
It benefits hospitals too, as they can focus on higher-acuity, medically complex cases that truly require inpatient care, emergency, trauma and complex medical services, gain access to beds, staff and operating rooms.This shift allows each care setting to do what it does best: outpatient centers for efficient, planned orthopedic care; hospitals for complex and acute needs.
Cost and value are driving decision-making and migration to ASCs
Employers, insurers and patients are paying closer attention to the total cost of orthopedic and spine care. At Steindler, we see that lower-cost outpatient settings are being prioritized as value is defined as quality + experience + cost control. Interestingly, it’s becoming quite clear that the “Triple Aim of Healthcare” is a framework that largely remains an aim in traditional hospital systems, but a reality in ASCs. At Steindler, we deliver excellent outcomes at a lower total cost and are becoming preferred providers as people learn more about our outcomes, team and facility.
Demand is growing, margins are tightening
An aging population and active lifestyles continue to drive demand for orthopedic care. At the same time, reimbursement pressure and rising operating costs are squeezing margins. We must focus on efficiency, such as streamlined operating rooms, standardized care pathways, disciplined supply chains and strong revenue cycle performance. This thinking promotes thrift rather than waste in healthcare.
Technology is about delivering value to patients and physicians
At Steindler, we are embracing technology where it makes sense. For example, we implemented an AI-powered clinical documentation solution that listens to patient-doctor conversations and automatically generates clinical notes. We are evaluating other tech solutions that will improve outcomes and efficiency.
Patient experience is a differentiator
Patients increasingly behave like consumers. They expect easy access, clear communication, respect for their time and coordinated care. To meet that expectation, orthopedic and spine groups are uniquely able to deliver a smooth, respectful experience — from scheduling through recovery — which, in turn, builds trust and market share.
Access, recovery, and physical therapy will continue to evolve
Digital access advancements enable a new model of patient access, while rehabilitation is becoming more flexible, combining in-person therapy with guided at-home and digital support.
Independent orthopedic and spine practices are better positioned for self-determination
Despite healthcare consolidation and ongoing efforts by health systems and private equity to purchase orthopedic and spine groups, independent orthopedic groups are realizing they can thrive without being acquired as the market evolves.
Site-neutral payments are next
Policy makers recognize that orthopedic and spine cases can be safely performed outside the inpatient hospital setting. The logical next step will be to stop paying wildly different prices for the same care based solely on where it is delivered.
As we begin the new year, orthopedic and spine groups should recognize that the very market that has stifled them for years has evolved and is now driving them to be more outpatient-focused, more independent, more efficient, more transparent and more patient-centered.
For communities and employers, it means access to high-quality orthopedic care close to home delivered by orthopedic and spine groups built around expertise, value, efficiency and trust. For patients, this means safer care, lower costs and better outcomes.
