Executive Briefing Monday September 1st, 2025

 

National Daily Hospital Executive Briefing — Sept 1, 2025

1. Hospital Margins

News:

• Median operating margin reached 1.2% in 2024, up from -0.5% in 2023 for nonprofit hospitals. Source: https://www.fiercehealthcare.com/providers/nonprofit-hospital-margins-flipped-positive-2024-fitch

• Average margin for nonprofit hospitals climbed to 3.7% in June 2025, up from 1.6% in May. Source: https://www.beckershospitalreview.com/finance/average-hospital-margins-match-12-month-high-5-notes

• Operating margins still below pre-pandemic levels; revenue growth now outpacing expenses. Source: https://www.chiefhealthcareexecutive.com/view/in-a-change-hospital-revenue-growth-is-outpacing-expenses

Recommendations:

• Use data analytics to monitor margin trends by service line.

• Consider M&A to realize scale efficiencies.

• Launch Tiger Teams to target high-opportunity revenue and cost areas.
  Sources: https://www.vizientinc.com/case-studies/financial | https://www.ey.com/en_us/insights/strategy-transactions/using-m-a-to-help-hospital-margins | https://www.innosight.com/insight/tiger-teams-driving-margin-growth-by-eliminating-hospital-bottlenecks

Case Studies:

• Revenue cycle overhaul generated ~$44M/year benefit. Source: https://www.impact-advisors.com/case-study/revenue-cycle-margin-improvement

• Lean Six Sigma in surgical services improved efficiency and margins. Source: https://www.caldwellbutler.com/index.php/case-studies/surgery

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2. Inpatient Throughput

News: Simulation modeling increasingly used to improve wait times and patient flow. Source: https://www.mdpi.com/2673-3951/5/4/78
Recommendations: Apply discrete-event simulation to optimize discharge timing and bed turnover. Source: https://www.usacs.com/services/case-studies/inpatient-throughput-improvements
Case Study: USACS model improved inpatient flow through better discharge coordination. Source: https://www.usacs.com/services/case-studies/inpatient-throughput-improvements

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3. Emergency Department Throughput

News: Split-flow ED models reduce length of stay and walkouts. Source: https://soundphysicians.com/case-study/split-flow-model-reduces-ed-wait-times-and-throughput
Recommendations: Implement acuity-based split-flow; join collaboratives to share throughput best practices.
Case Studies:

• Sound Physicians’ split-flow pilot showed measurable improvements. Source: https://soundphysicians.com/case-study/split-flow-model-reduces-ed-wait-times-and-throughput

• Johns Hopkins used simulation to optimize ED flow. Source: https://www.simul8healthcare.com/case-studies/johns-hopkins-health-system-improves-ED-throughput

4. Clinic Throughput (Outpatient)

News: Outpatient volume growth continues to pressure clinic throughput. Source: https://www.kff.org/health-costs/key-facts-about-hospitals
Recommendations: Expand telehealth, standardize protocols, and simulate clinic workflows. Source: https://www.simul8.com/applications/healthcare/managing-outpatient-flow-with-simulation
Case Study: Simulation improved efficiency in an endocrine clinic setting. Source: https://www.mdpi.com/2673-3951/5/4/78

https://www.simul8.com/applications/healthcare/managing-outpatient-flow-with-simulation

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5. Patient Engagement

News: Hospitals are leveraging social media to improve patient outreach and engagement. Source: https://www.hyro.ai/blog/social-media-patient-engagement-outreach
Recommendations: Launch digital campaigns and establish patient advisory groups for co-designed improvements. Source: https://pmc.ncbi.nlm.nih.gov/articles/PMC6080566
Case Studies:

• UCLA Connect boosted engagement with storytelling campaigns. Source: https://ahamediagroup.com/our-work/case-studies/optimizing-for-patient-engagement

• Patient expert boards guided R&D in multiple systems. Source: https://researchinvolvement.biomedcentral.com/articles/10.1186/s40900-024-00631-w

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Leader Checklist

• Margins: Deploy analytics; launch Tiger Teams; evaluate RCM and service-line performance

• Inpatient Throughput: Use simulation to optimize discharges

• ED Throughput: Adopt split-flow; engage collaboratives

• Clinic Flow: Expand telehealth strategies; standardize protocols; pilot simulations

• Patient Engagement: Launch digital campaigns; establish advisory councils

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Quick Metrics and Best Practices To Share With Your Team

1. Hospital Margins — Nonprofit hospital margins rose to 1.2% in 2024 (from -0.5% in 2023), with an average of 3.7% by June 2025, though still below pre-pandemic highs.

2. Inpatient Flow — Simulation modeling showed discharge coordination and bed turnover as the key levers to improve inpatient throughput.

3. ED Throughput — Split-flow models reduced ED length of stay and walkouts; Johns Hopkins demonstrated additional gains through simulation modeling.

4. Clinic Throughput — Outpatient visit volumes continue to rise; specialty clinic simulations have improved flow and patient experience.

5. Patient Engagement — UCLA’s Connect campaign boosted patient engagement with digital storytelling; patient advisory councils improved patient-centered design.

📍 Published at National Daily Hospital News
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