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Thursday, October 29, 2026 · Updated 11:04 AM MT · 46 stories today
Thu, Oct 29 · 46 stories todayPRO
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IndustryOctober 28, 2026

Three Health Systems Detail Strategies Offsetting Hospital Margin Pressure

Becker's Hospital Review reports that 43% of U.S. hospitals are operating at a loss, up from 33% before the pandemic, per Kaufman Hall's August 2026 flash report citing rising expenses, growing bad debt and charity care, and payer mix erosion. Three highly rated systems, University Health in San Antonio, Bryan Health in Lincoln, and Monument Health in Rapid City, described how they maintained strong credit ratings through operational efficiency: consolidating OR supply costs, eliminating contract labor, boosting imaging throughput, and tightly managing expense growth relative to revenue. University Health's CEO also said the system is modeling how it would absorb a potential $100 million reduction from Medicaid cuts expected under HR 1, planning years ahead of anticipated federal funding changes. The piece profiles operational tactics rather than announcing a new policy or regulatory action.

Why it mattersHospitals facing payer mix erosion and anticipated Medicaid funding cuts under federal reconciliation law are using operational efficiency, rather than payment policy changes, to protect margins, a signal other Medicaid-dependent providers may need to follow as federal cuts phase in.

Finance

Read the full article at beckershospitalreview.com →
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