A question often asked by health system leaders is what will be required for future success. Responses from some of Kaufman Hall’s smartest consultants are featured in this new blog from Ken Kaufman. One common element: The need to make and stick with really hard decisions.

CMS releases results from the first round of Medicare Drug Price Negotiations, Steward finds a buyer for its physician group, and employers are using price transparency data in their suits against Aetna.

In this week’s graphic, we highlight nearly 30 years of historical data from Kaufman Hall and the American Hospital Association to provide a broader perspective on hospital operating margins.

In a recent Becker’s Healthcare Podcast episode, Ken Kaufman, joined Scott Becker to discuss critical trends in healthcare finance, the impact of COVID-19 on hospital operations, and the challenges of consolidation and staffing in the healthcare industry.

CVS to roll out co-located Oak Street Health clinics amid reduced profit outlook, CMS finalizes inpatient payment rule that includes new mandatory bundled payment model, and an appeals court gives providers another win in No Surprises Act litigation.

Amid increased bipartisan interest from policymakers on the nation’s increasing medical debt burden (estimated to total at least $220B), this week’s graphic examines who holds medical debt and how recent changes to credit reporting have affected them.

After several challenging years, hospitals and health systems are experiencing modest improvements in financial conditions.

Because it has been so long since we have experienced a rate environment that provides for noticeable earnings, the art of generating excess earnings from cash assets may have gone dormant in the minds and busy days of treasurers. If so, it is time to bring that art back to life.

In this week’s graphic, we use data from Kaufman Hall’s National Hospital Flash Report and Syntellis Market Insights to assess the current state of hospital operating margins.

Community Health Systems plans to sell its three Pennsylvania hospitals, a bankruptcy judge allows Steward Health Care to close two Massachusetts hospitals, and CMS approves North Carolina’s medical debt relief program.

In this week’s graphic, we take stock of both the evolving usage and employer coverage of GLP-1 drugs, specifically for weight loss.

Health systems are confronting a new normal of shrinking revenue and rising labor costs. In the second quarter of 2024, increased labor expenses accounted for 83.9% of total expenses. Additionally, the median investment/subsidy per provider rose 3% since Q2 2023.