Q&A: Financial lessons from Northwell’s ACO
As the federal government gears up for another expansion of accountable care organizations (ACOs) and other types of value-based payment, one health system reflected on ways it improved its financial performance. Northwell Health has been part of the Medicare Shared Savings Program (MSSP) ACO for several years, treated nearly 90,000 attributed beneficiaries, earned shared savings…
Why rural hospital finances improved in 2025
Although rural hospitals remain in financially precarious positions, their overall finances improved in 2025. The reasons for this enhancement likely vary by market. The national median operating margin for rural hospitals has improved over the last three years: from -0.1% in 2023, to 1.0% in 2024 and 2.0% in 2025, according to the annual Chartis…
Big financial impacts from off-campus HOPD rule change
Many hospitals and health systems are facing costly work in preparation for 2028 documentation requirements to avoid off-campus HOPD revenue losses. And some could see a big financial hit, even if they successfully meet those requirements. The Consolidated Appropriations Act of 2026, enacted Feb. 3, created new documentation requirements for off-campus hospital outpatient departments (HOPDs).…
Paying medical bills leads healthcare cost concerns
Among specific healthcare cost concerns, paying a medical bill leads all others, according to a new survey. Healthcare costs, in general, are a long-standing and rising concern of patients and the public but less is known about which costs worry them most. “We’ve asked about top issues in healthcare and this year seeing that cost…
Risk-pay diverges by payer
The share of payments that include downside risk increased in traditional Medicare and Medicare Advantage (MA) but dipped in Medicaid and commercial insurance. Those findings were included in the annual tracking of payer risk that AHIP took over last year from the Health Care Payment Learning & Action Network (HCP-LAN), which had tracked it since…
Capital expenditures surge amid aging facilities
Several health systems and hospitals are boosting capital expenditures amid a long-term aging trend in the physical plant of those organizations. The average age of plant for not-for-profit hospitals and health systems reached 12.7 years in FY24, among organizations rated by Fitch Ratings. That was the oldest average in at least 13 years. The age…
FastFinance: M&A outlook; 2026 prep for cuts
HFMA’s FastFinance newsletter is now a podcast. Host Rich Daly discusses the most current and relevant healthcare news, delivered in an easily digestible format. Health systems are expected to ramp up their dealmaking activity next year but deep divides have emerged between for-profit and not-for-profit approaches. Also, this week’s Weird Number: $172 billion. That the…
Health System M&A Trends in 2026 Point to More Deals, Different Targets
Hospitals and health systems were expected to accelerate the trend of mergers and acquisitions (M&A) in 2026, although the type and size could change, said an industry advisor. Anu Singh, managing director for Kaufman Hall, said that overall, he expects health system M&A trends in 2026 to continue those of previous years. Those trends include:…
How Health Systems Are Preparing in 2026 for Medicaid Cuts
Hospitals and health systems rated by Fitch Ratings are using 2026 to boost revenue and cut expenses in preparation for federal Medicaid cuts that start next year. Overall, those organizations’ operating margins and operating cash flow margins improved in 2025 and were expected to further bolster both of those key performance metrics in 2026, according…
Hospitals not yet a fraud focus
The Trump administration has ramped up high-profile healthcare fraud prevention efforts across a range of areas. Hospitals are not yet in the crosshairs. Ryan Thurber, an attorney with Polsinelli, said the focus of much of the administration’s healthcare and Medicaid fraud detection is on “nontraditional providers” of services around the periphery of healthcare, such as…