$3 billion annual hospital VBP cost: study
Just four mandatory value-based payment (VBP) programs cost hospitals $3 billion in higher administrative costs every year, according to new research. The administrative cost findings of research published in August in JAMA Health Forum could help project hospital costs as mandatory VBP programs continue to propagate. The researchers identified changes in administrative costs when Inpatient…
Businesses increase support for hospital price caps
Business groups increasingly support various approaches to cap hospital prices. Although many business groups continue their traditional opposition to any government price controls, an increasing number of business professionals see ones focused on hospitals and health systems as an effective option. That support was shown in a new National Alliance for Healthcare Purchaser Coalitions (NAHPC)…
FastFinance: Capex trends; new 340B bill
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. Hospital and health system capital expenditures in fiscal 2025 reached their highest since the start of the financial crisis in 2008, according to Fitch Ratings Also, this week’s Weird Number: $137…
Capex surges to highest since 2008
Hospital and health system capital expenditures in fiscal 2025 reached their highest since the start of the financial crisis in 2008, according to Fitch Ratings Capital expenditure (capex) as a percentage of depreciation expense surged to 142.7% in fiscal 2025, the highest since it was 154.4% in fiscal 2008, among the hospitals and health systems…
Fitch medians: 10 things to know
Improving hospital and health system operating margins in 2025 were among the findings in the latest Fitch Ratings medians. Here are 10 insights from the Fitch Ratings’ 2026 medians (subscription required), based on audited 2025 data of its 222 rated organizations:
How to make direct contracting finances work
As direct contracting arrangements grow — including one state requiring health systems to offer them — a leading provider identified keys to boosting their finances. Nick Stefanizzi, CEO of Northwell Direct, leads Northwell Health’s for-profit direct contracting subsidiary. Since adding its first customer in 2022, it has grown to serve more than 300,000 employee members…
Site-neutral payment changes are most likely congressional reform this year
Legislation pushing site-neutral payments remains the most likely healthcare policy change to pass Congress this year, as it enters the final months of the legislative calendar. Congress is about to depart for its annual August recess, which will leave only a month and a half on the legislative calendar for action before the midterm elections.…
Biggest SDP recipients raise concerns about implementing rule
Hospitals in the states that receive the most funding from state-directed payments (SDPs) identified the range of impacts from a proposed rule and suggested alternative approaches. The comments from hospitals and hospital advocacy groups came in response to a proposed rule implementing SDP provisions of the One Big Beautiful Bill Act (OBBBA). OBBBA, enacted a…
What appeals court 340B rebate decision means for federal rebates
An appeals court barred 340B rebate programs by drug manufacturers, among recent legal developments. The case could have ramifications for federal 340B rebates. On July 21, the U.S. Court of Appeals for the D.C. Circuit upheld a lower court ruling that barred alternative 340B rebate models without explicit approval from HHS. “That’s certainly welcome news…
Medicaid programs mull dropping insurers
Various state Medicaid programs are considering replacing outside managed care plans with in-house management. Such a reversal of the multi-decade trend to outsourcing overall management of Medicaid plans to various insurers and reverting to fee-for-service (FFS) Medicaid could have major ramifications for hospitals and health systems. Bruce Greenstein, secretary of the Louisiana Department of Health…