What You Should Know: Operational and financial pressures drove mergers and acquisitions in the healthcare sector in Q1 2023, according to a new report from Kaufman Hall. In total, there were 15 announced transactions in Q1 resulting in $12.4 billion in total transacted revenue.The trend of fewer but larger transactions that characterized 2022 was maintained—the average size of the seller or smaller party in Q1 was $827 million, just below last year’s historic year-end average of
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Kaufman Hall
Report: Razor Thin Hospital Margins Becoming The New Norm
What You Should Know: - Hospital finances are beginning to stabilize as razor-thin margins become the new normal, according to the newest data from Kaufman Hall. The National Hospital Flash Report draws on data from more than 900 hospitals from Syntellis Performance Solutions. - The latest National Hospital Flash Report shows that the high level of variance that plagued hospital margins over the past
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Hospitals Enter 2023 Facing ‘New Normal’ of Financial Uncertainty
What You Should Know: - Hospitals enter 2023 on more stable footing following the worst financial year since the start of the pandemic—but challenges persist, according to the newest data from Kaufman Hall. - The latest National Hospital Flash Report finds that hospitals continue to experience the same challenges that made 2022 the worst financial year since the start of the pandemic, including higher labor expenses, lower patient volumes, and a fundamental
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It’s Time to Stop Accepting the Payer-Provider Dynamic as ‘Adversarial’ and Work Toward Alignment
Today’s relationship between payers and providers is more fraught than ever. With a history of transactional, often adversarial, fee-for-service contract negotiations, it’s no wonder that the healthcare industry has grown too comfortable pitting payers and providers against each other. The lack of trust and transparency between the two groups has led to a perceived misalignment of vision. Across the board, the administrative staff has shouldered the brunt of this friction, which in the end
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Inventory Management Systems Bolster Hospital Cost Savings Initiatives
For many hospitals and health systems, it’s been another challenging year. Increases in patient volume and modest revenue gains haven’t been enough to offset the impact of labor shortages and an inflation rate that reached a historic high in June. A recent Kaufman Hall report found most healthcare organizations had negative operating margins for the first half of 2022 due in large part to historically high expenses. In the face of these ongoing operating losses, the industry has
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18 HLTH 2022 Predictions from Digital Health Executives to Watch
Before HLTH 2022 kicks off next week in Las Vegas, we asked 18 digital health executives for their predictions and major themes to expect at HLTH. 1. Keith Reynolds, Chief Operating Officer at Welldoc Access to care is a central focus for healthcare given several factors: a growing population being impacted with chronic conditions, increased resourcing constraints, and growing fatigue and workload among providers. A recent study indicated that it would require a PCP 26.7 hours/ day
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3 Questions Healthcare IT Leaders Should Ask Before Implementing AI in Their Operations
Artificial intelligence (AI) and automation are no longer nice-to-have technologies for healthcare providers. They are mission-critical tools for addressing significant challenges many health systems and hospitals face today — from volatile patient volumes to ballooning labor costs and staffing shortages to low operating margins. Many of these challenges are macro-level economic trends that will continue to prevail for the foreseeable future. According to research from Kaufman Hall,
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Kaufman Hall Acquires Claro Healthcare
What You Should Know: - Kaufman, Hall & Associates, LLC (Kaufman Hall) has entered into a definitive agreement to acquire healthcare management consulting firm Claro Healthcare. - Claro Healthcare is the leading clinical documentation, hospital operations, and mid-revenue cycle improvement platform, blending technology, professional services, and domain expertise to deliver significant return on investment to providers across financial, quality, and compliance metrics. -
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Hospital Finances Down As Funding Dries Up, Report Finds
What You Should Know: - Hospitals and health systems saw decreases in outpatient revenue and operating room time and increases in inpatient lengths of stay from June to July 2022, leading to a decline in financial performance after months of improvement, according to the latest National Hospital Flash Report from Kaufman Hall. - The analysis reveals that U.S. hospitals and health systems are experiencing some of the worst margins since the beginning of the COVID-19
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Hospital Margins are Still in the Red Halfway Through 2022
What You Should Know: - U.S. hospitals, health systems, and physician practices continue to face historically high operating expenses that increased patient volumes and revenues could not counteract, leading to negative margins for the sixth straight month in 2022, according to data from Kaufman Hall’s National Hospital Flash Report and Physician Flash Report. - The median Kaufman Hall year-to-date operating margin index for hospitals was -0.09% through June, for a sixth
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