Becker’s Healthcare Podcast Hospital Margins, AI Strategy, and Value-Based Care with Laura Dyrda
Aug 13, 2025
Laura Dyrda, Vice President and Editor-in-Chief at Becker’s Healthcare, dives into the evolving financial landscape of hospitals and health systems. She discusses how organizations are adapting to economic pressures while improving margins. The conversation also highlights regional disparities in hospital performance and the success of smaller facilities. Dyrda emphasizes the vital role of AI in clinical decision-making and introduces new strategies for advancing value-based care delivery, showcasing a proactive approach to navigating healthcare challenges.
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Early 2025 Margin Recovery
- Nonprofit hospital margins improved in early 2025, with average margin rising from 1.6% to 3.7% and EBITDA up year over year.
- Net operating revenue per day grew faster than expenses, showing revenue gains outpacing cost increases.
Costs Shift: Drugs Up, Labor Growth Slows
- Drug expenses rose sharply, up about 12% year over year, driving overall expense increases.
- Labor expense growth slowed to around 4% due to fewer travel nurses and better staffing strategies.
Stronger Liquidity Provides Cushion
- Many hospitals have solid liquidity buffers, with averages like ~215 days cash on hand and improved cash-to-debt ratios.
- These cushions help organizations plan for policy and economic headwinds through 2027.