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…
Ahead of expected turmoil, the hospital sector is on solid footing
With uncertainty on the horizon for healthcare operations, hospitals and health systems appear to have established a stable foundation from which to respond to challenges. Recently reported financial data offers further indication that the not-for-profit (NFP) hospital sector has attained a measure of equilibrium several years after the pandemic and the ensuing turbulence in labor…
3 strategic alternatives to direct primary care physician employment
Hospitals continue to spend money employing their physicians — an estimated $312,528 per physician in the first quarter of 2025, up 6% from the same period last year, according to the most recent Kaufman Hall Physician Flash Report. The physician employment model is entrenched, but no health system can sustain losses of this amount over…
Key Senate committee eyes healthcare reform in the name of affordability
As described at a recent Senate hearing, hospitals, insurers and pharmacy benefit managers (PBMs) all are under scrutiny by Congress in efforts to curb the growth in healthcare costs. The Senate Health, Labor Education and Pensions (HELP) Committee held a July 31 hearing to examine ways to make healthcare more affordable for consumers and other…
Aetna’s new payment policy could leave hospitals at a disadvantage
Hospitals should take note of an insurer’s new approach regarding the two-midnight rule, especially given the potential implications if the policy becomes widely adopted. In a recent communication, Aetna said providers that contract with the company’s Medicare Advantage (MA) plans and Medicare Special Needs Plans face a new policy beginning Nov. 15 in instances when…
Optimizing the revenue cycle workforce: Balancing automation with empathy to elevate the patient experience
In today’s healthcare landscape, every financial conversation shapes not just patient satisfaction, but organizational trust. As health systems work to manage rising costs and operational complexity, revenue cycle teams find themselves carrying the dual burden of protecting financial performance while supporting patient experience, often without the resources to excel at either. Automation presents undeniable advantages…
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…
340B rebate models arrive in the form of a new pilot program
Federal healthcare officials took a step last week toward permitting rebate models in the 340B Drug Pricing Program, launching a pilot to allow for the testing of such models. The idea was proposed over the past year by drug manufacturers looking to rein in what they say are excesses of the 340B program. Rather than…
News Briefs: Budget reconciliation bill finalized with big implications for Medicaid
Declines in coverage and spending await the healthcare industry under the budget reconciliation bill signed into law by President Donald Trump on July 4. The Congressional Budget Office (CBO) projects $912 billion in reduced Medicaid spending and 10 million additional uninsured Americans in 2034 as a result of the law known as the One Big…
Medicare final rule brings a mixed bag for FY26 hospital inpatient payments
Hospitals collectively will receive a base payment increase of 2.6% in Medicare reimbursement for inpatient care provided in FY26, according to a newly published final rule. It’s a somewhat uneventful set of regulations compared with the recently released 2026 proposed rule for Medicare outpatient payments. But hospitals were hoping for a bigger inpatient update, with…