The strategic role of revenue cycle management in battling rising healthcare costs
Healthcare organizations are facing unprecedented operating costs, largely driven by labor and inflation. According to the American Hospital Association (AHA), “Persistent workforce shortages, severe fractures in the supply chain for drugs and supplies and high levels of inflation have collectively fueled hospitals’ costs.” The AHA also emphasized the challenges of “higher acuity care and deepening…
Why a health system’s growth strategy should include a build-versus-buy analysis
Recent market disruptions in the hospital industry make it imperative that health systems be precise in their capital planning for growth initiatives as part of an overall strategic vision. An essential goal for such planning is to find a balance between service line diversification and expansion, while maintaining sound financial results. Weighing the pros and…
HFMA’s editorial team earns its 20th award this year
The American Society of Journalists & Authors (ASJA) awarded Jeni Williams, a regular contributor to hfm, with an honorable mention for the special report, “SDOH: Leader or convener? Hospitals and health systems still struggle with their role,” which she wrote in 2023 as part of HFMA’s Healthcare 2030 series. Williams’ recognition in the ASJA’s B2B…
Private equity investing showing signs of rebound
The Federal Reserve’s plan to begin reducing interest rates in 2024 will likely unleash private equity’s pent-up demand for physician practices and other healthcare services companies. “Everybody wants to transact,” said Bret Schiller, managing director and head of healthcare in corporate client banking at J.P. Morgan. “I think that, at the first rate cut we…
Hospitals reached steadier ground financially as they moved into 2024
Hospitals came into 2024 with some financial momentum, even as expenses continued to rise and pivotal decisions loomed. The year-to-date median hospital operating margin reached 2.3% in December, the high mark for 2023 and the 10th consecutive month in which margins were positive, according to monthly data from Syntellis Performance Solutions, part of Strata Decision…
As healthcare defragments, payers grow stronger
Two professional memories from the past two decades come to mind as I look to the horizon and try to see where this industry is headed, as all healthcare investors must do. The first memory is of the constant refrain I heard from healthcare executives in Nashville, Tennessee, as I was learning the ropes of…
Thriving post-reset: Payer-provider partnerships after the pandemic
In the pre-pandemic era, payer-provider partnerships were often focused on aspirational goals of creating partnership value by managing costs of care and delivering high-quality care. Payers and providers aimed to drive differentiation and growth through these partnerships. In today’s more challenging macro-economic environment, these conversations are becoming more direct and practical, with both payers and…
David Johnson: The perils and possibilities of healthcare apps
In March of 2022, I coauthored a commentary titled “Healthcare’s final frontier: Engaging customers.” It contained this tongue-in-cheek Star Trek reference: “[H]ealthcare is now boldly going where most industries have gone before — into full-fledged consumer engagement.” Wanting full-fledged consumer engagement and making it happen are not synonymous. In the best of healthcare times, providers…
Summary: 10 vital responses to healthcare disruption
Note: This article is a summary of a report on HFMA’s Spring Thought Leadership Retreat. The full report is available to download. Disruption is reverberating throughout the healthcare industry, and it’s incumbent on legacy organizations to develop strategic responses for the benefit of their consumers, their communities and themselves. With that overarching challenge becoming ever…
4 points healthcare leaders should consider in their cyberinsurance calculus
In spring of 2023, two ransomware groups, Cl0p (or CLOP, per the U.S. Cybersecurity & Infrastructure Agency) and LockBit, attacked 130 organizations in the United States, many of them in healthcare.a Fortunately for healthcare organizations with cybersecurity insurance, those breaches would have been eligible for coverage. Yet the same may not have been true for…