FastFinance: Hospital non-patient revenue; ACA plan changes
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. Most hospital revenue is from non-patient-care sources, according to a new analysis. The shares of patient-care revenue vary widely by hospital type. Also, this week’s Weird Number: 40%. That’s the increase…
Hospitals object to ACA marketplace changes
Proposed changes to the rules of the ACA marketplaces will shift more costs onto hospitals, industry advocates told CMS. The comments came in response to a proposed rule for 2027 marketplace plans that aimed to stabilize enrollment from 2026 to 2027. “Hospitals are often the providers of last resort for many patients, and policies that…
Most hospital revenue is not from patient care
Hospitals derive only about one-third of revenue from patient care as low public payer rates and other factors have driven them to find other income sources, according to a new analysis. Net patient revenue was a median of 29.9% of gross revenue across nonfederal short-term acute care hospitals in 2024, according to an analysis by…
Despite delays, hospitals optimistic on SDPs
Although at least one state has waited nine months for CMS approval of its state-directed payment (SDP) plan, hospital executives said the approval process continues to churn. So far this year, CMS has approved $26.2 billion in hospital-focused SDPs, according to a FastFinance count of the list of approved SDPs. That amount includes both the…
States weigh hospital price caps
Several states are weighing legislation this year to impose various types of price caps on hospitals. The new legislation followed three states that enacted hospital price caps in 2025. Maine A price cap push in Maine appeared to stumble in recent days after legislation requiring price caps on hospital services was amended. The bill (LD…
FastFinance: Hospital building surge; AI-coding study pushback
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 will spend a record amount this year building new hospitals, with hospital and clinic construction budgets far outpacing outpatient facilities, like ASCs. Also, this week’s Weird Number: 39%. That’s…
Payer study: AI coding drives a multibillion-dollar spending increase
After years of allegations by payers that the increasing hospital adoption of AI-driven billing is increasing costs, the industry has produced the first research that allegedly quantifies it. Hospitals’ AI-enabled coding capabilities drove $2.3 billion in increased spending in a recent three-year period, according to new research from Blue Health Intelligence, a data analytics partner…
Despite pressures, healthcare construction spending to increase
Although concerns about hospital closures dominate headlines, spending on construction of hospitals — and other healthcare facilities — is moving at a record pace. Spending on hospital and clinic construction starts in 2026 were expected to jump 11.6% from 2025 to 2026 and reach $30.7 billion, according to ConstructConnect, a commercial construction project data and…
Finances drive REH conversion
One hospital’s conversion to a rural emergency hospital (REH) has reversed its financial challenges and allowed service changes sought by the local community. Negative operating margins were the norm for Mercy Hospital in Moundridge, Kansas, for more than 10 years before it considered a major strategic shift. The 15-bed prospective payment system rural hospital came…
Minnesota hospitals: 340B revenue from drugmaker profits
The $1.3 billion Minnesota providers garnered in 2024 from the 340B program was money that would have gone to drugmaker profits, states the hospital group. The latest state-mandated report on Minnesota covered entities’ earnings from 340B found: The increase from 2023 to 2024 primarily stemmed from the latest report adding office-administered drugs by covered entities,…