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March 28, 2024
Hospital finances continue recovery in February, but Change Healthcare's full impact still on the horizon
Summary
Hospital sector data for February indicates a continued recovery in operations, with higher revenues and more efficient patient discharges, despite looming concerns regarding the full impact of Change Healthcare's services outage. Kaufman Hall's report shows a slight dip in operating margin index to 4% for February from March's 4.7%, but an overall improvement from 2023. The report suggests hospitals are managing expenses and improving efficiency per patient. However, the cyberattack on Change Healthcare presents future financial challenges, prompting hospitals to take preemptive steps to manage liquidity and monitor revenue streams closely. The data, gathered from over 1,300 U.S. hospitals, also hints at the need for hospitals to diversify clearinghouses and banking partners to mitigate risk and keep an eye on claim denial rates as the backlog begins to clear.
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