National Daily Hospital Executive Briefing. Fast, actionable insights for healthcare leaders, published daily by National Daily Hospital News.
1. CMS FY 2026 IPPS Final Rule: Payment Increase and Transitional Exceptions
Update Summary:
CMS finalized the FY 2026 Inpatient Prospective Payment System (IPPS) rule, increasing Medicare inpatient payments by a net ~2.6% and adding $5 billion overall. Key components include a $2 billion boost to disproportionate-share hospital payments and $192 million for new medical technology. The rule discontinues the low-wage index policy but includes a transitional payment exception for impacted hospitals. It also shortens quality measure performance periods and removes some equity-related measures.
Recommendation: Begin financial planning to reflect the increased reimbursement and leverage the transitional exception if your hospital is affected.
For policy details and deeper analysis, see: https://www.mcdermottplus.com/blog/regs-eggs/highlights-of-the-fy-2026-ipps-final-rule/?utm_source=chatgpt.com
2. Outpatient Revenue Growth Outpaces Inpatient
Update Summary:
Outpatient revenue per calendar day grew 13% year-over-year, significantly outpacing inpatient growth at 6%. From September to October 2024 alone, outpatient revenue rose 7% compared to inpatient’s 1%.
Recommendation: Expand outpatient service capacity — especially GI and orthopedics — and adjust capital allocation accordingly. For benchmarks, consult Kaufman Hall’s National Hospital Flash Reports.
3. High-Performing Hospitals: Workforce and Strategic Positioning Differentiators
Update Summary:
Kaufman Hall and Fitch Ratings highlight that top-performing hospitals stand out through strong presence in growth regions, effective recruitment and retention, and aggressive payer strategies.
Recommendation: Map recruitment strategies, especially in underserved regions, to reduce staffing gaps. Strengthen payer negotiations to protect margins.
4. Emergency Department Boarding: State Action Heats Up
Update Summary:
States including California and Massachusetts are advancing legislation to cap ED boarding times (often 6–8 hours). Nationally, median ED boarding exceeds 10 hours for admitted patients, creating risk for both patient safety and regulatory scrutiny.
Source:
https://www.acep.org/administration/crowding--boarding
Massachusetts bill text: https://malegislature.gov/Bills/193/H1175?utm_source=chatgpt.com
Recommendation: Hospitals should:
Implement real-time dashboards for ED wait and boarding times.
Strengthen case management to expedite discharges and free capacity.
Coordinate perioperative leaders to improve inpatient-OR throughput.
For guidance, see:
https://www.ihi.org/sites/default/files/IHIAchievingHospitalWidePatientFlowWhitePaper.pdf
Case Study: Intermountain Health cut ED boarding by 25% using a capacity command center initiative.
Article:
https://www.beckershospitalreview.com/care-coordination/how-an-atrium-hospital-slashed-ed-boarding/
🔎 Quick Metrics Watch
Medicare Inpatient Payment Increase: +2.6% (FY 2026 IPPS)
Outpatient Revenue Growth: +13% YoY vs. +6% inpatient
Median RN Vacancy Rate: ~13.8% nationally; ~20% in rural hospitals
Median ED Boarding Time: >10 hours for admitted patients
Medicare Inpatient Payment Increase: +2.6% (FY 2026 IPPS)
Outpatient Revenue Growth: +13% YoY vs. +6% inpatient
Median RN Vacancy Rate: ~13.8% nationally; ~20% in rural hospitals
Median ED Boarding Time: >10 hours for admitted patients
⚡ Leadership Insight
“Most doors don’t need to be pushed. They just need you to move with them, changing your angle with theirs.”
“Most doors don’t need to be pushed. They just need you to move with them, changing your angle with theirs.”
📍 Published at National Daily Hospital News
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