As Medicare Advantage continues to grow and health insurers prioritize their margins in the segment, hospitals are the most vulnerable healthcare provider to rising administrative and financial MA burdens, according to a new report from S&P Global.

Somerville, Mass.-based Mass General Brigham reported an operating income of $47 million (0.9% margin) during the three months ending June 30, down from a $69 million operating gain in the same quarter last year. 

Massachusetts Gov. Maura Healey is demanding Dallas-based Steward Health Care honor severance payments for the employees of two state hospitals the health system plans to close by Aug. 31, according to an Aug. 15 news release shared with Becker's. 

Moody's downgraded New York City-based Mount Sinai's rating to "Baa3" from "Baa1" and revised its outlook to negative from positive. 

Competition is heating up in Central Virginia as Nashville, Tenn.-based HCA Healthcare plans to expand into an area in which Bon Secours Mercy Health has a prominent presence. 

Cleveland Clinic saw an operating income of $45.3 million at a 1.2% margin in the second quarter of 2024 for the three months ended June 30, a 312% increase from a $21.4 million operating loss (-0.6% margin) during the second quarter of 2023, according to its Aug. 16 financial report.

Financially troubled Dallas-based Steward Health Care has once again pushed back the sale hearing date for its hospitals in Arkansas, Louisiana and Massachusetts.

CMS expects its Medicare Drug Price Negotiation Program to reduce healthcare costs by $7.5 billion in 2026.

Healthcare bankruptcies hit a five-year high in 2023, which saw 12 hospitals and health systems file for bankruptcy, but have slowed over the last three quarters, according to a report published Aug. 14 by Gibbins Advisors, a healthcare restructuring consulting firm.

Presque Isle, Maine-based Northern Light AR Gould Hospital, part of Brewer, Maine-based Northern Light Health, is cutting positions in an effort to streamline operations, improve care access and reduce expenses. 

Children's hospitals' operating environment continues to present challenges because of increased labor costs and year-to-year fluctuations from respiratory virus cases. 

Six national hospital groups, including the American Hospital Association, America's Essential Hospitals and the Federation of American Hospitals, on Aug. 14 filed an amicus brief urging the Supreme Court to correct HHS' "misinterpretation" of the formula set by Congress to calculate Disproportionate Share Hospital payments.

CMS' expansion of the two-midnight rule led to increased inpatient volumes and revenue growth for some health systems this year, but the jury is still out on its long-term impact on hospital operations and financial performance. 

Grand Rapids and Southfield, Mich.-based Corewell Health operating margin was 2.1% for the first six months of 2024 ended June 30, compared with an operating margin of 1.7% during the same time period last year, according to the health system's Aug. 14 financial report. 

Navient is selling its revenue cycle management company Xtend Healthcare to CorroHealth. 

Disruptors are making more noise in healthcare while hospitals continue to rebound from ongoing financial and workforce challenges, but diversification is one key strategy health systems are capitalizing on to compete in a rapidly changing landscape. 

Private equity firms TowerBrook Capital Partners and Clayton, Dubilier & Rice are acquiring R1 RCM in a deal valued at $8.9 billion that is expected to close by the end of the year. 

Officials at the first Nebraska hospital to transition to rural emergency status said the conversion has been a game changer, CBS affiliate KOLN reported Aug. 13. 

Kaiser Permanente's Risant Health is headquartered in Washington, D.C., sharing half of an existing 4,200-square-foot office with the Oakland, Calf.-based system's government affairs team, the Washington Business Journal reported Aug. 6. 

Three health systems recently posted job listings seeking chief revenue officers.