An academic medical center (AMC) is a hospital system that is organizationally and administratively integrated with an academic institution to achieve a tripartite mission: train the healthcare workforce, conduct clinical research, and deliver high‐quality patient care. The mission and value of AMCs has made them a core element of the healthcare system in the United States, and has afforded AMCs relative stability against industry turbulence over the years. However, a new era of care transformation characterized by increased demand for accessibility, convenience, and affordability is challenging that stability. Evolving patient needs and preferences are creating a new value equation in the U.S. healthcare system, which may shrink the viable market for AMCs that fail to modernize all aspects of their tripartite mission. New market entrants and existing competitors that embrace innovation will soon out‐pace AMCs that lack the innovation infrastructure to create new clinical capabilities, enhance patient experiences, optimize cost structures, and seize on emerging revenue opportunities.