Costs & Cost Controls

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March 2025
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CMS vision shifts as agency halts funding for state programs

Editor's Note The Centers for Medicare & Medicaid Services (CMS) will no longer approve federal matching funds for designated state health programs (DSHPs) and designated state investment programs (DSIPs) that are not directly related to Medicaid services. According to the April 10 announcement, the decision aims to preserve the core…

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By: Matt Danford
April 11, 2025
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Hospital M&A activity drops to historic low amid economic and policy uncertainty

Editor's Note A sharp drop in 2025 brings hospital and health system mergers and acquisitions to their lowest point in years, according to Kaufman Hall’s most recent Mergers and Acquisitions Quarterly Activity Report. Just five transactions were announced in Q1, a steep decline attributed to widespread economic volatility, concerns over…

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By: Matt Danford
April 10, 2025
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Renewed push for healthcare price transparency faces familiar challenges

Editor's Note Although a recent executive order from President Donald Trump aims to make hospitals and insurers reveal negotiated prices, data inconsistencies and a lack of consumer usability continue to hinder progress, according to a March 31 article from NPR. As detailed in the report, the executive order builds on…

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By: Matt Danford
March 31, 2025
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States seek restraints on healthcare private equity

Editor's Note Multiple states seek to limit corporate influence in medicine by instituting additional checks on private equity-driven healthcare mergers, according to a March 17 report in Axios. Referencing multiple state-specific reports, the article summarizes specific efforts in Massachusetts, where a new law expands oversight of transactions; Maine, where a…

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By: Matt Danford
March 17, 2025
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GLP-1 drugs reshape surgery demand, threaten hospital revenue

Editor's Note The widespread adoption of GLP-1 weight-loss medications like Ozempic and Wegovy could put revenue at risk across multiple service lines, according to a March 11 article in Becker’s Hospital Review. As a result, hospitals and ambulatory surgery centers (ASCs) face critical questions about how to adapt. The article…

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By: Matt Danford
March 14, 2025
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Supreme Court case could threaten colorectal cancer screening access, ACG warns

Editor's Note The American College of Gastroenterology (ACG) is warning that millions of Americans could lose access to essential colorectal cancer (CRC) screenings if the Supreme Court rules against the role of the US Preventive Services Task Force (USPSTF) in guiding preventive care coverage. According to the organization’s March 7…

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By: Matt Danford
March 12, 2025
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Study: Machine learning improves OR efficiency, but challenges remain

Editor's Note Machine learning (ML) is enhancing OR efficiency by optimizing scheduling, predicting surgical durations, and reducing delays, according to a systematic review published February 21 in Cureus. However, privacy concerns, data access limitations, and the need for further validation remain barriers to widespread implementation. The review analyzed 21 studies…

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By: Matt Danford
March 7, 2025
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Capital funding crunch spurs creative hospital financing

Health systems are fundamentally capital intensive. They are regulated; depend on highly educated, high-cost employees; and operate under complex reimbursement structures. Investing in new technologies and infrastructure upgrades is imperative to keeping up with the latest medical advances. But what happens when capital funds are insufficient or no longer available?…

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By: Anne Wainscott-Sargent
March 5, 2025
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Study: Shifting imaging to outpatient centers could save billions

Editor's Note Moving radiology services from hospitals to outpatient centers could slash healthcare costs by billions annually while improving patient care, according to a March 3 Radiology Business News report on a study published in the American Journal of Roentgenology (AJR). The study found that shifting just 10% of hospital-based…

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By: Matt Danford
March 4, 2025
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Healthcare CFOs prioritize cost control, data-driven decisions

Editor's Note Survey results reveal healthcare finance leaders expect limited financial gains in 2025 and are shifting their focus to operational improvements and cost management rather than margin growth. DotMed reported the news February 24. The article is based on a new report on a survey of over 100 healthcare…

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By: Matt Danford
February 27, 2025
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