Economic trends affect patient volumes at two large health systems
Macroeconomic factors are causing a moderate drop in demand for healthcare services, according to insights from executives with a pair of leading for-profit hospital chains. At Community Health Systems (CHS), the first quarter of 2025 brought strong hospital volumes, but those dipped during the middle part of the year. Same-store adjusted admissions were 0.7% lower…
Senate committee examines ways to strengthen the supply chain for hospital drugs
Vulnerabilities in the supply chain for pharmaceuticals are putting patients at risk and hampering healthcare providers, according to testimony at a recent Senate hearing. The flaws manifest in shortages of vital drugs and in issues of quality and transparency, experts said during the Oct. 8 hearing of the Senate Special Committee on Aging. In Q1…
From crisis to catalyst: Rethinking the healthcare workforce in the wake of the OBBB
The One Big Beautiful Bill (OBBB) has drawn attention for its headline provisions: Millions likely will lose their health insurance and there will be a reduction in cumulative federal health spending of an estimated $1 trillion over 10 years. These measures, which will strain budgets and heighten pressures on U.S. healthcare providers, have rightfully captured…
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Do bed-day shortages mean we need to build more bed capacity? Maybe not
As patients nationwide increasingly opt to seek care at large urban academic health systems (AMCs) recognized for their availability of specialized care and a higher quality of care, AMCs in the nation’s largest cities are beginning to experience significant bed-day shortages. In response, they are proposing to build new bed-day capacity. But simply building more…
Finalized regulations look to phase out the manual aspect of prior authorization
Medicare’s FY26 final rule for hospital inpatient payments includes the latest federal effort to streamline and improve prior authorization. The rule has a subset of regulations titled “Health Data, Technology and Interoperability: Electronic Prescribing, Real-Time Prescription Benefit and Electronic Prior Authorization,” issued by HHS’s Assistant Secretary for Technology Policy and Office of the National Coordinator…
The financial cost of hospital and community violence
A new study assesses the financial impact of violence in hospitals and their communities, finding that the issue amounts to a multibillion-dollar problem annually. Estimated costs total $18.27 billion per year, according to a report published June 2 by the American Hospital Association (AHA). The largest share of that total, $13.1 billion, is the amount…
Hospitals grapple with uncertain tariff fallout as pharmaceutical levy looms
May 28 update: A U.S. trade court has issued an injunction on most of the tariffs imposed by the Trump administration, although tariffs on individual products (e.g., steel and aluminum) can remain. The administration has appealed the decision. May 29 update: The tariffs are back on for now after an appeals court stayed the lower…
Amid market turbulence, hospitals strive for stability in their financials
At a time of potentially significant headwinds for investment returns, operational performance becomes even more pivotal for hospitals. Recent financial results are mixed as indicators of whether not-for-profit (NFP) hospitals can readily absorb large investment-income losses. Operating margin plateaued for the sector in February, according to Strata Decision Technology’s latest monthly report. Median year-to-date margin…
Hospitals brace for impact of tariffs (updated article)
Note: The article was updated where noted after President Donald Trump’s April 8 remark about upcoming pharmaceutical tariffs. The headline was also updated after originally stating: “Tariff impact on hospitals may be relatively restrained in the short term” Sweeping tariffs announced over the last week by the Trump administration appear to have spared the healthcare…