CMS Releases New Rule Weakening ACA, Walgreens Acquired by Sycamore Partners, Kennedy Meets with Food Industry Leaders.

As healthcare looks to another period of uncertainty — namely the impact of potential tariffs on its supply chain — it’s important to remain vigilant, keep informed and be purposeful about next steps

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.

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.

While patient volumes decreased this month, expenses rose. The workforce continues to be competitive as labor expenses rose despite the dip in patient volumes.

With extension of the 2017 tax cuts identified as a key priority for the incoming Trump administration, offsetting expense actions will be needed to avoid increasing the federal deficit. Hospital leaders should be prepared for potential cuts to both the Medicaid program and the enhanced ACA subsidies enacted in 2021.

As hospitals and health systems intensify their financial planning efforts, revisiting and refining the forecasting techniques and tools that guide their decisions has become paramount.

This month’s data show general stability, with continued growth in outpatient revenue and expense reductions on a volume-adjusted basis.