Global & Health Sector Headlines
News: The AHA’s Cost of Caring 2025 report shows Medicare/Medicaid net inpatient payment increases (≈5.1%) between FY 2022-2024 lagged inflation (~14.1%), meaning hospitals were effectively reimbursed about $0.83 for every $1 spent in 2023. — https://www.aha.org/costsofcaring American Hospital Association+1
Recommendation: Hospital leaders must press for reimbursement reform and inflation adjustments, especially through advocacy with CMS and state Medicaid authorities.
Case Study: Fitch Ratings reports that U.S. not-for-profit hospitals saw median operating margin improve to ~1.2% in calendar year 2024 from –0.5% in 2023, showing that cost cutting + revenue optimization are working in some systems. — https://www.fitchratings.com/research/us-public-finance/us-nfp-hospitals-see-margin-improvement-challenges-mount-26-03-2025 Fitch Ratings
Health Policy & Industry Updates
News: ACDIS reported that in April 2025 hospitals saw outpatient revenue up ~9.7% year-over-year, inpatient revenue up ~5.5%, and gross operating revenue up ~8.5%, even as non-labor costs like supplies, purchased services, and drugs rose significantly. — https://www.stratadecision.com/press-release/hospital-operating-margins-unchanged-april-non-labor-expenses-continue-climb Strata Decision Technology
Recommendation: Hospitals should focus on controlling non-labor expenses and optimizing outpatient revenue streams as a buffer against margin compression.
Case Study: MyMichigan Health was honored in mid-2025 for its Continuing Care Clinics initiative which supports patients during transitions (post-discharge, ER visits, etc.) across 26 counties, demonstrating measurable reductions in readmissions and improved outcomes. — https://www.ourmidland.com/news/article/mymichigan-health-honored-reducing-readmissions-20416620.php Midland Daily News
Early Morning Briefing Highlights
News: Qualitative study (May 2025) of hospital discharges finds ~18% of U.S. patients report unplanned readmissions within 30 days; patients point to gaps in discharge planning, social supports, and bridging care as major contributors. — https://www.mdpi.com/2039-4403/15/6/192 MDPI
Recommendation: Hospitals should strengthen discharge planning workflows, ensure social support linkages, and patient education before discharge to reduce readmission risk.
Case Study: “Electronic Health Record Interventions to Reduce Risk of Readmissions” (2025) provides evidence for integrating interventions into EHRs (alerts, care-manager routing) to identify patients at risk and schedule follow-up. — https://pmc.ncbi.nlm.nih.gov/articles/PMC12272288/ PMC
Strategic Implications for Leadership
News: Despite improvements in outpatient and gross revenues, operating margins are not increasing significantly; non-labor cost inflation remains a major headwind. — https://www.stratadecision.com/press-release/hospital-operating-margins-unchanged-april-non-labor-expenses-continue-climb Strata Decision Technology
Recommendation: Leadership should double down on efficiency programs, predictive analytics for cost/drug/supply usage, and leverage outpatient growth while maintaining quality.
Case Study: “MyMichigan Continuing Care Clinics” shows that system-level investments in transitional care and community resources can both reduce readmissions and improve population health in multi-county regions. — https://www.ourmidland.com/news/article/mymichigan-health-honored-reducing-readmissions-20416620.php Midland Daily News
Quality Metrics to Share with Your Team
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Hospitals are being reimbursed ~$0.83 per $1 spent via Medicare IPPS for inpatient care (2023) due to inflation vs payment lag. — https://www.aha.org/costsofcaring American Hospital Association+1
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Median operating margin for not-for-profit hospitals rose to ~1.2% in CY2024 from -0.5% in CY2023. — https://www.fitchratings.com/research/us-public-finance/us-nfp-hospitals-see-margin-improvement-challenges-mount-26-03-2025 Fitch Ratings
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Outpatient revenue increase ~9.7% YoY in April 2025; inpatient revenue up ~5.5%; gross operating revenue up ~8.5%. — https://www.stratadecision.com/press-release/hospital-operating-margins-unchanged-april-non-labor-expenses-continue-climb Strata Decision Technology
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~18% of discharged patients have unplanned readmission in 30 days; key driving factors: poor discharge planning, social support gaps. — https://www.mdpi.com/2039-4403/15/6/192 MDPI
5. Continuing Care Clinics in 26-county region reduced readmissions measurably while serving >1 million residents. — https://www.ourmidland.com/news/article/mymichigan-health-honored-reducing-readmissions-20416620.php Midland Daily News
Leadership Call to Action
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Conduct internal review of discharge planning workflows and social support linkages using patient feedback and qualitative data.
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Prioritize non-labor cost management (supplies, drugs, purchased services) via negotiation, bulk purchasing, and usage oversight.
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Expand outpatient service lines, particularly with support for transitions of care (Continuing Care Clinics / similar models).
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Invest in EHR-based predictive alerts and care-manager workflows to flag high-risk patients at discharge.
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Engage state & federal reimbursement policy makers to adjust payments to catch up with inflation and cost of care.
📍 Published at National Daily Hospital News
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