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.

Michael McAuliff, politics and policy reporter for Modern Healthcare, joins host J. Carlisle Larsen to talk more about what healthcare programs could face spending cuts and reactions from lawmakers on Capitol Hill.

Five key steps health systems should consider implementing to improve their observation management strategies and ensure appropriate reimbursement.