Costs & Cost Controls

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July 2025
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Healthcare providers express cash flow concerns under new 340B rebate model

Editor's Note Healthcare providers could experience significant cash flow and operational changes under a new voluntary pilot program that fundamentally alters how the nation's second-largest drug payment program operates, according to an August 11 article in Modern Healthcare. As detailed in the article, The Health Resources and Services Administration announced…

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By: Matt Danford
August 12, 2025
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Hospital margins stable despite rising drug, supply costs

Editor's Note US hospitals and physician practices demonstrate steady financial performance through the second quarter of 2025, with health system operating margins holding at a median 1.2% year-to-date, according to new data from Strata Decision Technology analyzing more than 1,850 hospitals and 152,000 physicians. DotMed reported the news August 4,…

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By: Matt Danford
August 11, 2025
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Study: Loophole enables urban hospitals to qualify for rural subsidies

Editor's Note Hundreds of urban hospitals have obtained dual urban-rural Medicare classifications since a 2016 policy change, enabling them to qualify for reimbursement programs intended for rural providers. Fierce Healthcare reported the news August 4. As detailed in the article, a study published in Health Affairs by Johns Hopkins and…

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By: Matt Danford
August 6, 2025
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July poll results: Perioperative leaders are tackling labor costs, staffing flexibility

Perioperative leaders often have to make critical decisions, not just in the middle of an operational crisis but also somewhere in the edges—the routine but still high-stakes moments where leaders need to adjust resources or absorb costs under tight constraints. The economic margin for error continues to narrow, and many…

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By: Tarsilla Moura
July 31, 2025
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Fast-track ENT days boost surgical volume, cut backlog at UCSF Benioff Children’s

Editor's Note Designating underused neurosurgery blocks for straightforward ENT procedures increased surgical volume and reduced wait times at UCSF Benioff Children’s Hospital San Francisco, according to a July 3 report from the Children’s Hospital Association’s 2025 Transforming Quality Conference. The initiative began in early 2024, when ENT leaders and surgical…

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By: Matt Danford
July 24, 2025
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CMS payment overhaul could cut specialist pay

Editor's Note A “quiet transformation” in how Medicare pays doctors could reduce payments for specialty care, including rates for billing codes associated with surgery, diagnostic imaging, outpatient care, pain management, and orthopedics, Modern Healthcare reported July 22. According to the article, The Centers for Medicare and Medicaid Services (CMS)’ 2026…

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By: Matt Danford
July 24, 2025
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Navigating OR construction design, compliance, approval in a booming ASC market

Editor’s Note: This page is a companion piece to the main article, Proper planning prevents OR construction, renovation cost creep. It brings together four focused updates on OR and ambulatory surgery center (ASC) construction and renovation: Regulatory shifts: The Joint Commission's updated safety and sustainability requirements for hospitals and ASCs, including new…

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By: Uyen Vo
July 23, 2025
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Proper planning prevents OR construction, renovation cost creep

How would you describe the ideal OR? Whatever the answer, the chance to reimagine and reshape the perioperative suite can be among the most exciting projects of a perioperative leader’s career. However, OR construction and renovation also can be among the most daunting projects of a perioperative leader’s career. Just…

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By: Uyen Vo
July 23, 2025
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CMS proposes 2026 Medicare pay bump, targets wasteful spending

Editor's Note The Centers for Medicare & Medicaid Services (CMS) has proposed a 3.62% increase to the 2026 Medicare physician fee schedule, according to a July 14 article in Fierce Healthcare. The proposed rule sets the conversion factor at $33.42, up from $32.35 in 2025. The increase reflects a 2.5%…

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By: Matt Danford
July 15, 2025
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Hospital M&A climbs as rural, outpatient shifts reshape care strategies

Editor's Note Hospital mergers and acquisitions saw a slight increase in Q2 2025, but broader shifts in healthcare affiliations and delivery models continue to gather momentum, according to a July 10 Kaufman Hall analysis of M&A activity for the second quarter of 2025. The report recorded eight hospital and health…

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By: Matt Danford
July 15, 2025
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