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Kaufman Hall’s analysis of hospitals’ financial footing reveals the vicious cycle that all too often results when financial resources are severely constrained and the impact that greater compensation has on retaining existing employees. I would add though that less tangible influences – among them whether physicians and clinicians feel valued and are freed to focus more on patient health outcomes and less on bureaucratic tasks – are likewise powerful contributors to any institution’s fiscal health. Fierce Healthcare https://bit.ly/48HYeKs

Cash on hand for hospitals improved in 2023, but is still considerably down, and Fitch Ratings expects to only see modest improvements in cash on hand in 2024. According to Fitch, the median days cash on hand for hospitals is 216 days, and the outlook for a significant improvement isn’t great. Additionally, "The long-time ideal range for healthy operating margins is in danger of a permanent reset for U.S. NFP hospitals," Fitch says. Find out more in this article from Modern Healthcare's Caroline Hudson or in the following resources: - Fitch release: https://lnkd.in/g-_DWs_u - "Hospitals should improve financially in 2024, but it’s unclear how much, Fitch Ratings says," Chief Healthcare Executive article by Ron Southwick: https://lnkd.in/gyu2e9rk #healthcare #finance #revenuecycle

If the average outlook for operating margins for hospitals is 1 to 2 %. That means there are plenty of hospitals on the negative side of breakeven If you find yourself there we have a 100 day plan that identifies a 3 to 5 % opportunity Give us a call at aspire results

Across the industry, hospitals closed 2023 with an upward trend of stability and growth. This article examines how to keep that pattern going well into 2024. Click to read below! #HCRI #healthcare #hospitalsector #financialgrowth

2024 has been a pivotal year for U.S. hospitals and health systems, with 21 institutions receiving credit rating downgrades from Fitch Ratings and Moody's Investor Service. A mix of rising expenses, operational losses, and a tough labor market has put many healthcare organizations under financial strain. Hospitals like Adventist Health saw their rating drop due to a 31% increase in leverage following acquisitions, highlighting the risks tied to growth strategies. Allina Health, meanwhile, faced ongoing operational pressures, leading to a downgrade despite having a stable outlook. Other notable downgrades include Mount Sinai, which struggled with delays in hospital closures and a cyberattack, and Texas Children's Hospital, which was impacted by weak profitability. These downgrades aren’t isolated incidents. They reflect broader challenges in the healthcare industry—post-pandemic labor shortages, inflationary pressures on supplies and services, and declining patient volumes. For smaller institutions, these factors are compounded by limited cash flow and heavier reliance on credit lines, as seen with John Fitzgibbon Memorial Hospital and Jackson Hospital & Clinic. As the financial environment tightens, hospitals will need to rethink their strategies to balance growth with financial sustainability. In the coming months, how these systems respond will be crucial to maintaining quality care and financial stability. Source: Becker's Healthcare #HealthcareFinance #HospitalLeadership #OperationalEfficiency #FitchRatings #MoodyRatings #HospitalChallenges #HealthcareAdaptation

HEALTHCARE: Strata's data shows that some hospitals are doing significantly better this year than others. In a recent article by Chief Healthcare Executive, Steven Wasson, Chief Data and Intelligence Officer at Strata, states, "The bar was pretty low to begin with. But we keep seeing margins improve, which is great." Find out the one factor that separates the most successful organizations: https://bit.ly/46p7jZ4 #Healthcare #HospitalPerformance #StrataDecisionTechnology #HealthcareInnovation

💸 The Theme of 2024 Hospital Finances: Navigating Uncertainty 💸 According to Kaufman Hall, financial pressures are reshaping strategies. How will hospitals adapt to survive and thrive? 🏥📊 https://lnkd.in/eptCrc3T #HealthcareFinance #KaufmanHall #HospitalMargins

NEW: With hospital buildings crumbling, IT systems that are no longer fit for purpose, and a £13.8bn maintenance backlog, it’s clear the NHS needs substantial and strategic investment to ensure high-quality care for all. In this blog, Laurie Rachet-Jacquet explores five key considerations for capital investment in the NHS ahead of the Budget: ➡️ Assess where capital need is greatest. ➡️ Organise capital infrastructure to best deliver value for money. ➡️ Ensure support for NHS staff accompanies capital investment. ➡️ Consider investing in other models of care that might be more effective (for example virtual wards). ➡️ Address geographical and socioeconomic inequalities. Read more in Laurie’s blog 👇 https://lnkd.in/etR4nF_z

The hospital sector is financially stronger than in 2022, with improved margins reported by major systems. However, many hospitals still operate at a loss. Fitch Ratings anticipates median results to improve but remain below pre-pandemic levels. Despite rising outpatient revenues and cost-saving strategies, about 40% of hospitals continue to lose money, particularly rural facilities facing closure threats.   Obstetrics services are frequently cut, exacerbating rural healthcare access issues. Financial distress drives merger and acquisition activity, with rural hospitals especially vulnerable.   Kaufman Hall emphasizes the importance of reinvestment in community healthcare and warns against unsustainable financial performance, urging strategic interventions to address ongoing challenges.   Our RCM team can assist by reviewing denied claims, submitting appeals, and tracking the status of appeals for prompt resolution. We can also identify trends in denial reasons to implement preventive measures and streamline processes for future claims.   Additionally, our team can provide training and support to frontline staff to improve documentation accuracy and ensure compliance with payer requirements, ultimately optimizing revenue cycle performance and maximizing reimbursements.   We are the One!   #revenuecycle #revenuecyclemanagement #priorauthorization #medicalbilling #medicalcoding #healthcare #healthcaretechnology #accountsreceivables #denialmanagement #consulting #management #implementationpartner Fierce Healthcare

This one is wonky but important. I’ve had so many conversations this week about distressed hospitals in California. Here are three quick charts to help you understand the financial numbers underpinning the issue. My takeaway? Far too many hospitals in the state have operating expenses exceeding operating income, and the spread between the top and bottom quartiles is growing. #healthpolicy #healthfinancing