Hospitals In Better Financial Shape Going Into 2025
Hospitals and health systems are on better financial footing than a year ago. Operating margins, cash flows, outpatient revenue, average inpatient length of stay, and outpatient revenue improved from 2023. For many providers (in particular health systems), volumes have rebounded to above pre-pandemic levels.
In October 2024, the mean operating margin for hospitals was 4.4%, up from 2.5% in November 2023 and 2.7% in December 2023, says consulting firm Kaufman Hall.
Labor expenses have dropped and inflationary pressures have subsided. But there has been continued growth in supplies, drug expenses, and purchased service expenses.
On the policy front, hospital groups are worried about budget cuts under the incoming Trump administration that could lead to the expiration of Exchange enhanced subsidies, rate cuts in Medicare and Medicaid, and a pullback on coverage overall. As well, smaller entities could struggle on the cybersecurity preparedness front.
#hospitals #providers #cybersecurity #coverage #medicare #medicaid #costs #rates #drugpricing #exchanges
Kennedy On The Hill’s Nominee Watch List
The Hill has put Department of Health and Human Services-nominee Robert F. Kennedy, Jr. on its top five list of nominees to watch going into Donald Trump’s inauguration on January 20. Thus far, Republicans in the Senate have not raised issues with Kennedy, although private concerns have been leveled. He is the only senior healthcare nominee on the watch list right now.
#trump #rfkjr #hhs
https://thehill.com/homenews/senate/5061466-trump-nominees-confirmation-battles
— Marc S. Ryan
