Hospital Margin / Revenue / Reimbursement
News: Hospital operating margins in the U.S. averaged 2.6% in July 2025, down from 3.4% in June, showing a decline in profitability. — https://www.beckershospitalreview.com/finance/hospital-margins-slide-to-2-6-average-profitability-declines-6-notes/?utm_source=chatgpt.com
Recommendation: Hospitals should closely monitor and manage non-labor operating expenses while pushing growth in outpatient service lines to buffer margin erosion. — https://medcitynews.com/2025/08/hospital-finance-debt-margins/?utm_source=chatgpt.com
Case Study: Kaufman Hall’s analysis of ~1,300 U.S. hospitals found margins rose to 3.7% in June from 1.9% in May, largely due to higher outpatient and volume-adjusted revenues. — https://medcitynews.com/2025/08/hospital-finance-debt-margins/?utm_source=chatgpt.com
Hospital Inpatient Throughput
News: A study showed only 28% of discharges occur outside peak hours (11 a.m.–5 p.m.); after interventions, the percentage increased to 36%, with earlier discharge orders and more discharges before 11 a.m. — https://pmc.ncbi.nlm.nih.gov/articles/PMC11838157/?utm_source=chatgpt.com
Recommendation: Develop interdisciplinary committees to redesign discharge workflows, aim to shift workload earlier in the day, and track time of order vs time of discharge. — https://pmc.ncbi.nlm.nih.gov/articles/PMC11838157/?utm_source=chatgpt.com
Case Study: The hospital that implemented Plan-Do-Study-Act cycles, rounding protocols, and incentives for early discharge saw no negative impact on patient satisfaction or length of stay while improving throughput metrics. — https://pmc.ncbi.nlm.nih.gov/articles/PMC11838157/?utm_source=chatgpt.com
Hospital Emergency Department Throughput
News: Prolonged ED LOS (> 8 hours) increased from 7.8% to 13.9% between 2017–2024; inpatient boarding > 4 hours rose from 2.6% to 6.2%. — https://pmc.ncbi.nlm.nih.gov/articles/PMC11992599/?utm_source=chatgpt.com
Recommendation: Hospitals should incorporate predictive analytics for boarding and LOS, strengthen coordination between ED and inpatient bed management, and consider process redesigns. — https://arxiv.org/abs/2505.14765?utm_source=chatgpt.com
Case Study: A deep-learning model (N-BEATSx) forecasted ED boarding counts 6 hours ahead with high accuracy, enabling proactive staffing and transfer decisions. — https://arxiv.org/abs/2505.14765?utm_source=chatgpt.com
Hospital Bed Placement Throughput
News: Nearly 30,000 hospital beds were eliminated nationwide between 2019–2022, even as patient acuity and inpatient utilization are projected to rise (5% increase in utilization, 10% increase in inpatient days over next decade). — https://www.vizientinc.com/insights/all/2025/from-every-angle-emergency-department-overcrowding?utm_source=chatgpt.com
Recommendation: Systems need to invest in bed capacity planning, explore flexible inpatient units, and reduce inpatient length of stay as part of flow improvement efforts. — https://www.vizientinc.com/insights/all/2025/from-every-angle-emergency-department-overcrowding?utm_source=chatgpt.com
Case Study: Penn Medicine’s geographic cohorting and patient flow/throughput management efforts reduced “excess days” and impressed with improvements in inter-facility bed placement and transfers. — https://www.haponline.org/Portals/1/docs/Events-and-Education/2025-Leadership-Summit/6WoodHAP5122025.pdf?ver=dZ4z_yLaJO9AVPtcYCB2DQ%3D%3D&utm_source=chatgpt.com
Hospital Patient Satisfaction / Engagement
News: In hospitals that improved discharge timing and throughput (from the above inpatient throughput case study), patient satisfaction remained stable despite significant operational changes. — https://pmc.ncbi.nlm.nih.gov/articles/PMC11838157/?utm_source=chatgpt.com
Recommendation: Engage patients early about discharge expectations and time; ensure communication about delays is transparent to support satisfaction even under stress. — https://pmc.ncbi.nlm.nih.gov/articles/PMC11838157/?utm_source=chatgpt.com
Case Study: The same hospital increased discharge orders placed before 9 a.m. from 4% to 16%, and discharges before 11 a.m. from 7% to 19%, without hurting satisfaction metrics. — https://pmc.ncbi.nlm.nih.gov/articles/PMC11838157/?utm_source=chatgpt.com
Patient Safety / Culture of Safety
News: AHA report shows hospitals absorbed $130 billion in underpayments from Medicare & Medicaid in 2023; underpayments growing ~14% annually since 2019. — https://www.aha.org/press-releases/2025-04-30-new-aha-report-hospitals-and-health-systems-squeezed-persistent-economic-challenges?utm_source=chatgpt.com
Recommendation: Hospital leadership must build financial resilience and safety culture together—underpayment impacts staffing, resources, and the ability to maintain safety standards. — https://www.aha.org/press-releases/2025-04-30-new-aha-report-hospitals-and-health-systems-squeezed-persistent-economic-challenges?utm_source=chatgpt.com
Case Study: Behavioral health services were on average -38.9% under-cost in Medicare reimbursement in 2023, suggesting patient safety and care access risks in under-financed service lines. — https://www.aha.org/guidesreports/2025-04-28-2024-costs-caring?utm_source=chatgpt.com
Quality Metrics to Share with Your Team
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U.S. average hospital operating margin in July 2025: 2.6% — https://www.beckershospitalreview.com/finance/hospital-margins-slide-to-2-6-average-profitability-declines-6-notes/?utm_source=chatgpt.com
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Hospital margins improved to 3.7% in June from 1.9% in May in sample of ~1,300 hospitals — https://medcitynews.com/2025/08/hospital-finance-debt-margins/?utm_source=chatgpt.com
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Discharges outside peak hours increased from 28% → 36% after interventions — https://pmc.ncbi.nlm.nih.gov/articles/PMC11838157/?utm_source=chatgpt.com
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ED prolonged LOS (> 8 hours): 13.9% in 2024; inpatient boarding > 4 hours: 6.2% — https://pmc.ncbi.nlm.nih.gov/articles/PMC11992599/?utm_source=chatgpt.com
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Prediction model (ED boarding count) MAE ~2.10 using deep learning model (6-hour ahead forecast) — https://arxiv.org/abs/2505.14765?utm_source=chatgpt.com
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Hospitals absorbed $130B+ in Medicare & Medicaid underpayments in 2023 — https://www.aha.org/press-releases/2025-04-30-new-aha-report-hospitals-and-health-systems-squeezed-persistent-economic-challenges?utm_source=chatgpt.com
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Behavioral health services average margin: approx –38.9% under cost in Medicare payment in 2023 — https://www.aha.org/guidesreports/2025-04-28-2024-costs-caring?utm_source=chatgpt.com
Leadership Call to Action
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Prioritize strengthening outpatient revenue streams and non-labor cost controls to combat shrinking operating margins.
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Invest in discharge planning and process changes (e.g., early morning orders, non-peak discharges) to improve inpatient throughput.
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Use predictive analytics for ED boarding and LOS to anticipate demand and coordinate resources proactively.
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Expand bed capacity planning and flexible usage (e.g. float beds, flexible inpatient units), especially in areas with expected growth in utilization.
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Align financial planning with safety and staffing—ensure underpaying service lines such as behavioral health are not neglected, which can undermine patient safety and access.
📍 Published at National Daily Hospital News
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