Last week, I joined a panel of leaders at the San Diego Business Journal’s Economic Trends 2026 event to discuss the forces shaping our local economy in the year ahead.
The panel, which was moderated by Mark Cafferty, president and CEO of the San Diego Regional Economic Development Corporation (EDC), also included Jay Henslee, VP and district manager, U.S. Bank; Mike Bialik, partner and president, C3 Employee Benefits Division; and Sanjeev Muralidharan, California Commercial Strategy Principal, Alaska Airlines. Keynote speaker was Eduardo Velasquez, vice president of economic development and research for the San Diego Regional EDC. They each offered valuable perspective on where San Diego is headed.
Some of the topics discussed among the panelists:
- Employers are expected to prioritize cost containment strategies in 2026, including self-funding — which isn’t just limited to large organizations anymore — to help control rising health care expenses.
- Housing affordability — which continues to deteriorate — places significant pressure on households and poses one of the most urgent challenges to San Diego’s long-term economic stability.
- Lenders are emphasizing the importance of being more thoughtful and intentional in their decisions, focusing on strong credit discipline and deeper relationships as economic uncertainty continues.
- As the economy has weakened, demand for workers has fallen — but recent data point to continued demand for talent with degrees and credentials.
The audience of more than 100 people was engaged throughout the discussion, with several pointed questions directed toward the EDC and, similarly, to me. Many of the concerns raised echoed themes shared by C3’s Bialik, underscoring a common uncertainty about the region’s economic trajectory.
Many of these economic pressures are showing up in our hospitals, too. That’s where I had the chance to share what we’re facing on the health care side, including mounting financial strain from Medicaid cuts, potential program eliminations, and the loss of coverage for millions. This is coupled with statewide pressures from the Office of Health Care Affordability’s below-cost spending caps and the costly 2030 seismic mandate, both of which further threaten hospital stability and patient access.
Yet there are bright spots even as we face challenges, with opportunities to be found in innovation, such as AI, and regional collaboration and partnerships, including things like the 2025 Community Health Needs Assessment, which will strengthen care delivery and help us better understand community needs.
Hospitals and health care services are essential community pillars — supporting well-being, creating jobs, and strengthening local economies. Together, these conversations underscore how deeply our region’s economic health is tied to the strength of its hospitals. As we navigate the year ahead, HASD&IC remains steadfast in advocating for the resources, policies, and partnerships that hospitals in both San Diego and Imperial counties need to continue caring for our communities — ensuring they remain a place where people, businesses, and health care can thrive.