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Administrators

The Monthly Pulse – Administrators (Apr. 2025)

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Industry News
Hospitals are more packed post-pandemic
The Story
Hospital occupancies have been on the rise for several years, rising from an average of 63.9% in the 2010s to 75.3% between May 2023 and April 2024. Occupancy rates were up 11% in 2024, and experts theorize that the post-pandemic surge is a result of a declining supply of staffed beds rather than an uptick in hospitalizations. This supply has seen a downward trend, shrinking from 802,000 beds between 2009 and 2019 to 674,000 in 2024.
What You Should Know
As Americans age, hospitalizations are projected to increase through the end of the decades. If the staffed hospital bed supply also continues its downward trend, researchers believe the U.S. will see a bed shortage. Some areas will witness a greater impact than others, including highly-desirable facilities and rural regions. Possible solutions could include leveraging AI to coordinate patient scheduling and educating patients to determine the right source of care, which could include primary or urgent care for less-serious needs.
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The other physician pipeline problem
The Story
As the aging population grows and requires higher acuity care, solutions have largely focused on supporting the medical student pipeline. Yet, the healthcare industry may be overlooking a key piece of the puzzle: retirements. A large population of the patient care workforce is made up of physicians aged 55 and up, and more than a third of active physicians are expected to retire within the next decade.
What You Should Know
Hospitals already operating within tight margins are going to feel the pinch as retirements accelerate, but some healthcare organizations have already begun introducing innovative strategies to address the issue. Flexible roles are emerging as a possible solution, which would allow physicians nearing retirement to cut back on hours to achieve a better work-life balance. Additionally, establishing an advanced notice of retirement program could provide incentives to physicians for notifying their employers up to two years before their departure, which would give the organization more time to find a replacement.
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Physicians say prior authorization stands in the way of medically necessary care
The Story
According to a recent study by the American Medical Association (AMA), physicians say prior authorization is a major barrier to providing timely and medically necessary treatment, citing care delays and negative impacts on clinical outcomes. Many respondents have witnessed a steady uptick in denials in recent years, and nearly a third say requests are often or always denied. Physicians are concerned that denial rates will increase as insurers deploy tools powered by artificial intelligence (AI) to process claims.
What You Should Know
Some insurers claim that AI will reduce the burden on physicians by providing faster decisions, but the AMA recently cited a senate report showing that AI denied claims up to 16 times more than when humans reviewed them. While the AMA has asserted that decisions should be made by physicians without interference from unsupervised AI tools, it’s unlikely that insurers will cease the use of this technology. As a result, providers will likely need to leverage their own AI-powered solutions to submit claims.
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Upcoming Events

National Association of Health Services Executives C-Suite Leadership Experience
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Thurs., Apr. 10 - Sun., Apr. 13
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Becker's Healthcare 15th Annual Meeting
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Mon., Apr. 28 - Thurs., May 1
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HealthLeaders CEO Exchange
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Wed., June 4 - Fri., June 6
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2025 American Hospital Association Leadership Summit
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Sun., July 20 - Tues., July 22
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Healthcare Financial Management Association 2025 Annual Conference
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Sun., June 22 - Wed., June 25
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