Editor's Note Moody’s Ratings has shifted the health insurance industry’s credit outlook from stable to negative, according to a February 3 article in Fierce Healthcare. According to the article, the downgrade is due to escalating medical costs that outpace reimbursement rates. Analysts project an 8% rise in commercial market spending…

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Editor's Note Health system leaders expect to face mounting physician challenges, shifting reimbursement models, and new growth opportunities throughout this year, according to VMG Health’s Health System Leader Expectations survey. Based on responses from 73 health system leaders, the report highlights the sector’s key trends and priorities for 2025. Key…

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Editor's Note Hospital credit ratings in 2024 reflected mixed trends, with downgrades continuing to outpace upgrades, though at a slower rate than in 2023, according to a January 22 report from Kaufman Hall. The organization cites 5 key takeaways: Downgrades narrowed but persisted. The number of downgrades dropped to 95…

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Editor's Note Mergers and acquisitions (M&A) on the part of hospitals and health systems are expected to increase in 2025, rebounding from a 13% dip over the past year, Modern Healthcare January 7 reports. However, newly empowered state oversight laws are likely to temper the scale and pace of activity,…

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Editor's Note The credit outlook for the nonprofit hospital sector improved from “deteriorating” to “neutral” in Fitch Ratings’ 2025 report, the first revision in more than 2 years. Healthcare Dive reported the news December 11.  According to the outlet, Fitch attributes the shift to “steady improvement” in hospital operating margins,…

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Editor's Note Hospitals’ financial outlook is stable, although growth is slowing and certain costs are projected to increase, particularly for cybersecurity, according to two recent Becker’s reports on data from Moody’s Investor Services. The first, published November 14 in Becker’s Hospital CFO Report, notes that “hospitals are facing a stable…

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Editor's Note An S&P report published on August 7 revealed that downgrades of nonprofit hospital ratings outpaced upgrades in 2023, a trend expected to persist despite a slowing pace, Becker’s Hospital CFO Report August 12 reports. The report, which analyzed nonprofit acute healthcare medians, showed a downgrade-to-upgrade ratio of 3.8…

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Editor's Note A new low for median days cash-on hand could spell trouble for US nonprofit hospitals and health systems, Healthcare Dive reported August 12. “Nonprofit hospitals’ cash on hand — the funds immediately available to finance daily operations — is one indicator of financial health,” the outlet reports. “Low cash…

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Editor's Note HCA Healthcare reported nearly $1.5 billion in net income for the second quarter (Q2), exceeding expectations, Modern Healthcare July 23 reports. The Nashville-based system attributed part of this success to a significant reduction in contract labor costs, which dropped by more than 25% compared to Q2 2023. This…

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Editor's Note New findings from health consultant Sg2’s 2024 Impact of Change report projects a 21% increase in ambulatory surgery center (ASC) volume, to reach 44 million by 2034, ASC Focus July 8 reports. An aging population, better diagnostics, and epidemiological factors are driving this demand, Tori Richie, senior consulting…

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