hospitals

Federal Health Policy Update for August 20

Don’t Miss: Latest No Surprises Act/Independent Dispute Resolution news Dept of Homeland Security issues guidance on “public charge” The following is the latest health policy news from the federal government for August 14-20.  Some of the language used below is taken directly from government documents. Congress Thirty Senate Democrats have written to HHS Secretary Kennedy seeking to reverse the cancellation of health research grants administered by the Agency for Healthcare Research and Quality (AHRQ).  For more information, see the letter here. Congress remains in recess; the House is expected to return on August 31 and the Senate on September 14.  [...]

Non-Profit Hospitals Struggled in 2025, Moody’s Finds

The financial performance of non-profit hospitals weakened in 2025, according to Moody’s, the financial rating service company. According to Moody’s: Median operating margins fell from 1.3 percent in 2024 to 1.2 percent in 2025. Median operating income fell 13.3 percent. Revenue growth fell from 9.6 percent to 8.9 percent. Expenses continued to grow, driven by increased wages and rising costs for purchased services and prescription drugs. On the other hand, Moody’s also found that: Revenue growth outpaced rising expenses. Patient and pharmacy activity grew. Hospitals in some states benefited from expanded Medicaid supplemental payments. Commercial reimbursement improved. For a closer [...]

2026-08-18T14:42:20-04:00August 20, 2026|hospitals, Medicaid|

Analysis Puts Price Tag on Loss of Medicaid State Directed Payments

Thirty-seven states face the loss of significant federal Medicaid revenue depending on how the Centers for Medicare & Medicaid Services ultimately implements a provision in the 2025 reconciliation bill that called for new limits on so-called state directed payments – Medicaid money the states direct to their Medicaid managed care plans with instructions on how to use that money. The  2025 law calls for nearly a trillion dollars in reduced federal Medicaid spending and $60 billion of that cut could result from new limits on state directed Medicaid payments to managed care organizations.  Providers in eight states, led by California, [...]

2026-08-18T16:49:35-04:00August 19, 2026|Congress, hospitals, Medicaid|

Mandatory Value-Based Programs Increase Hospital Costs

While policymakers continue to pursue mandatory Medicare value-based programs at least in part to help reduce taxpayers’ costs for Medicare, they may be robbing Peter to pay Paul. According to a new study, hospitals that participate in federally mandated Medicare value-based purchasing programs face increased administrative costs for doing so even while federal agencies maintain that the programs are saving taxpayer money. Brown University researchers examined 15 years of hospital cost reports and found that participation in Medicare’s Hospital Value-Based Purchasing Program, Hospital Readmissions Reduction Program, and Hospital-Acquired Condition Reduction Program cost hospitals about $650,000 a year in added administrative [...]

2026-08-13T16:41:29-04:00August 17, 2026|hospitals, Medicare|

Federal Health Policy Update for August 13

Don’t Miss: Federal court vacates key aspect of No Surprises Act’s IDR process President calls for changes in childhood immunizations CMS seeks billing info so it can pay APM docs their bonuses  The following is the latest health policy news from the federal government for August 7-13.  Some of the language used below is taken directly from government documents.  The White House The White House has issued an executive order calling for a change in recommended childhood vaccines.  The order suggests reducing the number of recommended childhood vaccines from the current 17 to 11 revising the status of the remaining [...]

Disagreement Over 340B’s Future

Almost immediately after the Department of Health and Human Services announced a pilot program to test using a rebate model in the 340B Drug Pricing Program, members of Congress responded with proposed legislation that would prevent HHS from implementing that pilot. Last week, HHS’s Health Resources and Services Administration announced its 340B Rebate Model Pilot Program, a refined version of a previous pilot program that a federal court rejected earlier this year.  Under this new model, qualifying drug manufacturers will be able to provide the 340B ceiling price to eligible 340B providers through rebates, an approach manufacturers have increasingly sought, [...]

2026-08-11T15:58:28-04:00August 12, 2026|340b, hospitals|

Loss of Insurance Options Hitting Hospital Bottom Lines

Hospitals are starting to feel the impact of the loss of enhanced subsidies for the purchase of Affordable Care Act health insurance plans. According to officials from a number of for-profit hospital companies, they have been surprised at how few patients who lost their Affordable Care Act enhanced premium subsidies have purchased alternative coverage, leaving them uninsured instead.  Nearly three million fewer people purchased insurance through Affordable Care Act exchanges this year than last year. Such individuals continue to turn to hospitals for care – increasingly, for care they put off because they were uninsured, resulting in greater acuity.  Hospitals [...]

2026-08-05T12:54:53-04:00August 7, 2026|Affordable Care Act, hospitals|

Federal Health Policy Update for August 6

The following is the latest health policy news from the federal government for July 31 to August 6.  Some of the language used below is taken directly from government documents.CongressThe Senate is expected to vote on its version of a continuing resolution (CR) before leaving for recess; it would extend federal government funding through December 11.  Notably, the legislation includes language that would prevent the Office of Management and Budget from moving forward with its proposed change in how federal grants are awarded and overseen.Because appropriations bills have not cleared both chambers of Congress, the federal government faces a September [...]

More Medicaid DSH Money Coming for Some Hospitals?

Some hospitals may be in line for larger Medicaid disproportionate share hospital payments as a result of a federal court decision that calls for changes in how those Medicaid DSH payments are calculated. Last week, a U.S. District court in Texas again vacated a 2023 Centers for Medicare & Medicaid Services regulation that excludes inpatient days covered by uncompensated care pools, such as through section 1115 waivers, when quantifying Medicaid days for the purpose of calculating hospitals’ Medicaid DSH payments.  This decision applies nationwide and has implications for the computation of some hospitals’ Medicaid DSH payments and for establishing hospitals’ [...]

2026-08-05T11:40:12-04:00August 6, 2026|340b, hospitals, Medicaid disproportionate share, Medicaid DSH|

Rural Areas Account for Net Loss of U.S. Hospitals

Rural hospitals are closing at a significant rate while the number of urban hospitals in the U.S. is mostly holding steady, according to a new analysis. The Health Care Affordability Lab at Yale found that between 2001 and 2023, 114 new rural hospitals opened – but 348 closed, a net loss of 234 hospitals in rural areas.  Thirty-one of the 50 states experienced a net loss of rural hospitals, led by Texas, (24), Tennessee (14), California and Georgia (12), and Kansas (10).  States with the biggest net increases in rural hospitals were Wyoming (5), Colorado (3), and Nevada (3). Meanwhile, [...]

2026-08-04T17:49:32-04:00August 5, 2026|hospitals|
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