Across the healthcare industry, many hospital and health system financial leaders are looking for the perfect concoction to boost their operating margins.

Johnson City, Tenn.-based Ballad Health has finalized its sale of select operating assets of its outreach laboratory services to Labcorp. 

Elevated inflation, Medicaid expansion, the reinstatement of Medicare sequestration and significant waves of M&A all have intensified a long-term trend of credit divergence, splitting hospitals into stronger and weaker segments, Fitch Ratings said in a Dec. 9 report. 

Sioux Falls, S.D.-based Sanford Health struck a partnership with Availity to enhance its revenue cycle management in the wake of the Change Healthcare cyberattack.

Providence, R.I.-based Brown University Health, formerly Lifespan, reported an operating income of $44.7 million (1.3% margin) in the fiscal year ending Sept. 30, 2024, nearly six times the $8.6 million (0.3% margin) operating gain reported in the previous fiscal year. 

Medford, Ore.-based Asante Health is investing in surgical and emergency department services at Ashland (Ore.) Community Hospital as part of the system's  plan to ensure the facility's long-term viability. 

With 16 years of healthcare experience and a fresh perspective as the new CFO of Sacramento, Calif.-based UC Davis Health, Jennifer Doll has set her sights on managing expenses and fostering collaboration.

Walgreens Boots Alliance is reportedly in talks with New York City-based Sycamore Partners, a private equity firm, to sell itself and become private, The Wall Street Journal reported Dec. 10. 

Hospitals are seeing claims denials increase as insurers incorporate AI into the review process to quickly accept or reject claims. Hospitals are feeling the pinch as a result.

Lebanon, N.H.-based Dartmouth Health reported an operating income of $40.7 million (4.1% margin) in the first quarter of fiscal 2025, ended Sept. 30, 2024, up from a $8.2 million loss (-1% margin) in the first quarter of fiscal 2024. 

Danbury, Conn.-based Nuvance Health reported a $11.4 million operating income (1.5% margin)  for the three months ended Sept. 30, 2024, an improvement from a $13.2 million operating loss (-2% margin) for the same period in 2023, according to its most recent financial report.

Portland-based Legacy Health reported an operating loss of $3 million (-0.4% margin) in the second quarter of fiscal year 2025, ended Sept. 30, 2024, up from an $11.9 million operating loss (-1.8% margin) during the quarter ended Sept. 30, 2023, according to its most recent financial report.

U.S. Anesthesia Partners, a physician-owned group serving more than 700 healthcare facilities, has launched Elevated Practice Solutions, a subsidiary aimed at improving anesthesia efficiency at hospitals, ASCs and independent practices. 

Nashville, Tenn.-based HCA Healthcare, the largest health system in the country, is seeking finance chiefs at four of its hospitals. 

Things are looking up for U.S. nonprofit hospitals and health systems headed into 2025.

Nonprofit health systems are making slow but steady financial progress in an era marked by rising costs and operational challenges. 

San Diego-based Scripps Health reported $206.2 million in operating income (4.2% margin) in the fiscal year ending Sept. 30, a $242.7 million turnaround from the $36.6 million operating loss (-0.9% margin) in the previous fiscal year. 

Miami-based CareMax, a healthcare provider focused on older adults, filed a Dec. 2 WARN notice for 530 employees after it sought Chapter 11 protection Nov. 17. 

Meridian Health Plan of Illinois, a subsidiary of Centene, has terminated its Medicaid contract with Chicago-based Northwestern Medicine, effective Dec. 31. 

Nonprofit hospital operating margins remained steady in October with outpatient revenue growing, according to Kaufman Hall's "National Hospital Flash Report" data released Dec. 9.