Financial Sustainability

New rule on Medicaid DSH payments will impose stricter limits on many hospitals

Numerous hospitals that receive Medicaid disproportionate share hospital (DSH) payments face a tighter cap on their payment amounts after the Feb. 23 publication of a CMS final rule. The regulations were spawned by 2020 year-end legislation that made changes to the DSH hospital-specific limit (HSL), including with respect to how third-party payments factor into the…

Nick Hut February 23, 2024

Site-neutral payment has backing in healthcare policy circles, but its efficacy as a cost restraint is unclear

The concept of site-neutral payment continues to receive support from members of Congress and healthcare policy analysts, as demonstrated during a recent hearing. The Jan. 31 hearing of the House Energy and Commerce Committee’s Health Subcommittee was intended, in part, to promote pending legislation that would strengthen price transparency and implement other policies designed to…

Nick Hut February 15, 2024

Hospitals reached steadier ground financially as they moved into 2024

Hospitals came into 2024 with some financial momentum, even as expenses continued to rise and pivotal decisions loomed. The year-to-date median hospital operating margin reached 2.3% in December, the high mark for 2023 and the 10th consecutive month in which margins were positive, according to monthly data from Syntellis Performance Solutions, part of Strata Decision…

Nick Hut February 12, 2024

2024 outlook: Hospitals can expect a steadier year financially, but key questions loom

Although the past year brought more stability for the not-for-profit hospital sector, analysts foresee 2024 as a pivotal period in determining the viability of individual organizations. Fitch Ratings continues to describe the sector’s outlook as “Deteriorating.” In a year-end report, the credit-rating agency said downgrades of hospitals and health systems in 2023 had outpaced upgrades…

Nick Hut December 22, 2023

In response to a congressional RFI, provider advocates give input on ways to bolster rural healthcare

Hospital and physician groups were among the respondents to a request by a key congressional committee for information on improving rural healthcare. In an RFI issued in September, the House Ways and Means Committee sought policy solutions for augmenting access to — and the quality of — healthcare in relatively remote areas. “The committee will…

Nick Hut October 19, 2023

Amid positive signs financially, hospitals continue to grapple with high costs in labor and other areas

The latest financial metrics for the hospital sector reflect a period of increasing stability but also sustained challenges. August financial data from more than 1,300 hospitals, as reported by Syntellis Performance Solutions, showed improvements in key metrics. The month-over-month increase in median operating margin was 3.5 percentage points, helping the year-to-date margin rise to 1.4%…

Nick Hut October 17, 2023

Healthcare News of Note: Providers in these 10 states may struggle the most to collect claims from payers 

Over the past few weeks, I have found these industry news stories that should be of interest to healthcare finance professionals. 1. The top and bottom states for paying provider claims are detailed in new report “A connection exists between where a provider operates and how fast and accurately claims are paid,” according to a…

Deborah Filipek September 22, 2023

The 5 provider strategies to improve profit margins

Improving financial performance and operating margins has become one of the most pressing concerns for health system CEOs. To meet future margin targets, leaders will have to bring a new level of focus, resources and structure to achieve deeper cost reductions on a recurring basis. At the same time, this is critical to ensuring that…

HFMA September 13, 2023

How to staff smarter and reduce reliance on expensive travel contracts

To bridge the healthcare staffing gap and tackle workforce issues such as burnout, spikes in labor costs, and rising retirements among nurses, hospitals and healthcare facilities need a technology-driven approach that empowers staffing managers with the control needed to address fluctuating patient volume without understaffing or overspending on labor. This How-To guide highlights the challenges,…

HFMA August 3, 2023

5 things to know about Medicare’s FY24 final rule for inpatient payments as hospitals foresee adverse impacts

The FY24 final rule for Medicare inpatient payments didn’t bring hospitals the type of rate update they sought, and for some organizations a bigger concern is changes to uncompensated care (UC) payments and disproportionate share hospital (DSH) payments. Here are five big points about the regulations, which take effect Oct. 1 and also cover Medicare…

Nick Hut August 2, 2023
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