The rising cost of care, growing Medicare Advantage pain points, and frustrations over not receiving appropriate or timely payments from commercial insurers are key factors driving health systems to take a tougher stance in contract renewal negotiations.

The hospital workforce is critical to the care process and is most often the largest expense on a hospital or health system's balance sheet. Even before the pandemic, labor expenses — which include costs associated with recruitment and retention, employee benefits and incentives — accounted for more than 50 percent of hospitals' total expenses, according to the American Hospital Association. 

Portland, Maine-based Saint Joseph's Rehabilitation and Residence, a post-acute facility and subsidiary of Portland-based MaineHealth Maine Medical Center, will close Sept. 20 to create a path for an updated facility to offer stronger long-term care amenities. 

Tampa (Fla.) General Hospital's CEO is shedding more light on the hospital's plans to invest $162 million next year to support greater integration with USF Health, its university affiliate. 

Southwestern Health Resources, a 31-hospital joint venture, conducted a mass layoff affecting 129 employees on Sept. 10. 

Health system leaders face mounting challenges that require bold, innovative strategies to ensure long-term financial sustainability and operational efficiency. Rising costs, workforce shortages and payer challenges are reshaping how hospitals operate, with many rethinking traditional partnerships, tackling revenue cycle complexities and exploring new M&A models.

Dallas-based Steward Health Care received approval from U.S. Bankruptcy Court Judge Christopher Lopez to sell Wadley Regional Medical Center at Hope (Ark.) to Hope-based Pafford Health Systems for $200,000 during a Sept. 12 court hearing. 

Minneapolis-based Allina Health reported an operating loss of $63.2 million (-4.5% margin)in the second quarter, a 49% improvement on the $122.7 million loss (-9.6% margin) reported in the second quarter of 2023.

Hospital and health system payroll continued to steadily rise in August, according to Fitch Ratings, which expects more of the same in September.

Nashville, Tenn.-based Meharry Medical College has received a $20 million gift from an anonymous donor following its $175 million investment from Bloomberg Philanthropies.

Joanna Weiss held several leadership positions within Tampa, Fla.-based Moffitt Cancer Center before being named CFO in May.

The monthly operating margin index for hospitals was 3.8% in July, up from 3.3% in June, indicating the beginning of a slow and sustained recovery for nonprofit hospital systems, according to Kaufman Hall. 

"Skyrocketing" administrative costs and increasingly burdensome insurer policies are driving up care denials, straining hospital resources and delaying patient care, the American Hospital Association reported Sept. 10. 

The American Medical Association released updates Sept. 10 to its Current Procedural Terminology code set for 2025.

Administrative costs now account for more than 40% of hospitals' total expenses for delivering patient care, with a significant portion driven by the rising number of care denials stemming from the growing use of artificial intelligence tools by insurers.

Dallas-based Steward Health Care filed a Sept. 10 stipulation that Pennsylvania will provide $1.5 million to the for-profit health system's Sharon (Pa.) Regional Medical Center for three months to keep it from closing.

Seventy-seven percent of health system finance leaders surveyed said they are using some form of revenue cycle outsourcing, according to a Sept. 9 report from consulting company Guidehouse. 

Joanna Weiss was named CFO of Tampa, Fla.-based Moffitt Cancer Center in May, but her time with the system dates back much further. 

Swedish private equity firm EQT is acquiring a controlling interest in GeBBS Healthcare Solutions from ChrysCapital. 

Rural healthcare faces significant financial challenges that hinder the delivery of quality medical services. Limited resources, outdated systems, and complex reimbursement processes exacerbate these difficulties. Financial ERP (Enterprise Resource Planning) software has emerged as a strategic advantage, offering rural healthcare providers finance teams the tools to streamline operations, improve financial management, and enhance patient care through faster decision making.