Welcome to BlueBin's Financial Focus newsletter! We're excited to bring you insights on the intersection of finance and healthcare, specifically how supply chain dynamics impact financial performance. Tailored for those on the finance side of healthcare, this newsletter will provide valuable analysis and strategies to help you navigate the complexities of healthcare finance. Stay tuned for expert insights and actionable tips to enhance your financial decision-making!
Industry News
Learn what's happening in the financial side of healthcare.
Analysis warns that Medicaid disenrollments under the July-enacted One Big Beautiful Bill Act could shift 5–20% of Medicaid patients to low-collection self-pay, cutting hospital net revenue by 0.4–1.4% (up to $25B nationwide) and slashing average operating margins by more than 70% in the worst case.
Analysis of 1,300 hospitals found margins improved to 3.7% as revenue per patient and outpatient gains strengthened finances, yet widening gaps between strong and weak performers—driven by rising bad debt, non-labor costs, and purchased services—signal persistent threats to long-term hospital stability.
By partnering with BlueBin, a major West Coast children’s hospital slashed OR supply costs by 70–75%—cutting expenses from $320,823 to $79,357—while ensuring near-perfect supply availability and reducing waste.
Note: BlueBin’s mission is to transform healthcare by enhancing the supply chain process, ensuring that patient care staff have the right supplies at the right time, and maximizing efficiency. In line with this mission, BlueBin advocates for and supports the AHRMM Keys for Supply Chain Excellence. By focusing on improving inventory management, optimizing supply chain processes, and minimizing waste, we aim to reduce costs, accelerate operational efficiency, and enhance clinical outcomes throughout the continuum of care. The AHRMM Keys for Supply Chain Excellence serve as key performance indicators (KPIs), establishing essential standards for supply chain management in the healthcare field. Learn more about the AHRMM Keys.
Article summary: U.S. health spending is projected to reach $5.6T in 2025 and climb to $8.6T by 2033, consuming over 20% of GDP. Spending growth slows slightly compared to prior years but remains consistently above economic growth, driven largely by hospitals, physician services, and prescription drugs. Out-of-pocket costs will rise steadily, though capped reforms (e.g., $2,000 Medicare drug cap) will moderate the burden for some populations.
Did you know? BlueBin helps hospitals confront rising costs by using its Kanban system, SmartScan automation, and BlueQ analytics to right-size par levels, reduce waste, capture supply costs in real-time, and free up clinical labor—directly lowering supply and operating expense growth while improving supply chain resilience.
Financial Tip
Use item velocity reports to right-size par levels and free up cash.
Hospitals often carry excess stock because par levels aren’t adjusted to actual usage. By using an item velocity report—which shows how fast bins are turning and recommends new par levels—you can reduce unnecessary inventory, lower carrying costs, and free up cash for higher-priority needs
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