A conversation with Rich Liekweg, CEO of BJC Health System in Missouri, and Nick Barto, president of BJC Health System

Craig Garthwaite, Professor of Strategy and the Director of Healthcare at Kellogg, joins host J. Carlisle Larsen to talk more about the goals of the center. He also shares his thoughts on the challenges facing the industry.

Hospitals seeking funds for capital needs are facing several challenges, which is driving interest in non-traditional financing structures, often involving real estate. Synthetic leases are one alternative, but they require a careful assessment of both their benefits and considerations that may make them a less attractive option.

RFK Jr. clears Senate panel, federal and state policy battle over transgender care comes to head in New York, Moody’s downgrades health insurer credit outlook

On today’s episode of the Gist Healthcare podcast, we hear the second half of host J. Carlisle Larsen’s conversation with Modern Healthcare’s Michael McAuliff about a document making the rounds on Capitol hill that outlines potential federal healthcare spending cuts.

Of the long list of possible federal budget cuts released on January 17, the suggestion to eliminate the tax-exempt status for interest payments on municipal bonds is an item of particular concern. While it is too early to wager on any of the items on the list, the implications of this move for not-for-profit hospitals would be severe.

In the fourth quarter of 2024, the median investment/subsidy per physician was $306,792, an increase of 5% compared to Q4 2023.

In 2024, hospital financial and operational performance stabilized. Outpatient revenue increased, and patient observation days decreased. Though expenses in 2024 rose, they did not outpace inflation on a volume-adjusted basis.

OMB memo causes significant confusion, Change cyberattack affected 190 million people, Cigna to limit out-of-pocket drug costs.

This week’s graphic illustrates the challenging operating environment many rural hospitals find themselves in.

As hospitals and health systems respond to the challenges and opportunities of a stabilizing but still challenged market environment, their strategic and financial plans will inevitably change.

Despite overall industry improvements for not-for-profit health systems, the divide between stronger and weaker performers continues to increase. Other challenges to the sector include the still-challenged labor market, the continued difficult payer environment and potential policy changes from the new Trump administration.