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Nearly 60% of hospitals report rise in non-labor expenses
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Nearly 60% of hospitals report rise in non-labor expenses

Non-labor expense increases of 6% to 10% over the past year were driven in part by tariffs, says Kaufman Hall report. Operations By Nathan Eddy | December 15, 2025 | 10:35 AM Photo: Ryan Mcvay/Getty Images Hospitals and health systems are heading into 2026 with rising non-labor expenses, workforce pressures, capacity constraints and payer reimbursement issues shaping their financial outlook, according to a Kaufman Hall report.Nearly 60% of surveyed organizations reported non-labor expense increases of 6% to 10% over the past year, driven in part by tariffs – an issue that 83% of respondents are now actively quantifying through internal workgroups.“Respondents repeatedly cited reimbursement challenges as a leading challenge facing their organizations,” said Lance Robinson, managing director and leader of Kaufman Hall’s Operations Improvement Practice, in an interview with Healthcare Finance News.He said denials, Medicaid pressures and legislative uncertainty were causes for concern.“In addition, labor still represents the largest share of operating costs for health systems,” he said.He points out that 70% of respondents said they are pursuing ways to optimize their workforce, including raising starting salaries, offering signing bonuses and looking for opportunities to increase remote or hybrid schedules where sensible.Clinical Staff Costs RiseMeanwhile, competition for clinical staff is pushing costs higher, with 83% of respondents reporting raising salaries, and 81% offered signing bonuses to retain or recruit employees.Health systems are also turning to advanced practice providers, though 42% said the effectiveness of APP deployment varies widely across their organizations.An additional hurdle is widespread capacity challenges, with 91% of health systems admitting they cannot accommodate patients in a timely manner.Emergency department bottlenecks are a major driver: 77% identified ED holds as the top capacity constraint, followed by delays tied to insurance

How AI, digital sovereignty and data localisation are reshaping European data strategies
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How AI, digital sovereignty and data localisation are reshaping European data strategies

Share this article Copy Link Share on X Share on Linkedin Share on Facebook EU regulatory changes are changing the way in which firms are approaching data sovereignty and investment in AI infrastructure, says Western Digital’s Alex Segeda. (Photo: Timofeev Vladimir / Shutterstock) AI has become the driving force of Europe’s digital ambition. Many sectors – from healthcare to manufacturing – are racing to deploy new models, automate workflows and unlock a competitive advantage. But one problem remains: more often than not, organisations are attempting to build advanced AI on infrastructure that isn’t ready to host it. AI conversations typically focus on GPUs, training techniques, and models. Yet another potential limiting factor sits much deeper: organisations may underestimate AI’s need for vast amounts of data and data storage. In parallel, the European Union’s push for digital sovereignty is changing its regulatory approach toward AI, forcing enterprises to rethink their data storage strategies.  These two forces are applying themselves to different aspects of the data economy and AI use. That, understandably, can cause complexity. What are the key considerations, therefore, for organisations looking to balance both and benefit from this new reality?  How the sovereignty drive is reshaping AI infrastructure Digital transformation has driven organisations to rely more heavily on interconnected, distributed and multi-domain IT architectures. The ‘five Vs’ of data – velocity, volume, value, variety and veracity – should also shape an organisation’s core tiered infrastructure. The demands of managing this complex architecture continue to span across legal, compliance, tax, audit and risk management.  For any business, data sovereignty and governance should not be an isolated compliance task – it should, ideally, shape how and where an organisation’s core systems operate. Regulatory pressure has also transformed the scope of data obligations. GDPR l

Hospitals were overpaid after Change cyberattack, Health Affairs says
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Hospitals were overpaid after Change cyberattack, Health Affairs says

Hospitals were overpaid after Change cyberattack, Health Affairs says CMS distributed $3.3B to providers experiencing revenue disruptions, including $2.2B to hospitals, report says. Reimbursement By Susan Morse , Executive Editor | December 11, 2025 | 10:32 AM Photo: Reza Estakhrian/Getty Images The federal government overpaid hospitals and other providers in relief funding following the February 2024 cyberattack on Change Healthcare, according to a new Health Affairs report. The Centers for Medicare and Medicaid Services distributed $3.3 billion to providers experiencing revenue disruptions, including $2.2 billion to hospitals, the report said. “We found that the opt-in, one-size-fits-all nature of this relief funding simultaneously resulted in overpayments to many participating hospitals and underparticipation by many hospitals that had likely been disrupted by the cyberattack,” the report said.Health Affairs  released “Lessons from CMS Relief Funding After Cyberattack on Change Healthcare,” this month.The design of future provider relief payments could be improved for accuracy, Health Affairs recommended. For example, CMS might adjust amounts downward from 30-day average payments. CMS could also build in outlierpayments for providers experiencing unusually severe disruptions, reflecting the finding that some recipients experienced a revenue disruption far exceeding their 30-day average payment amountWHY THIS MATTERSChange Healthcare was hit by the ransomware attack in February 2024, about two years after the company was bought by UnitedHealth Group. The cyberattack affected Change’s claims processing business which impacted hospital payments nationwide. CMS stepped in to help with reimbursement issues, establishing the Change Healthcare/Optum Payment Disruption accelerated and advance payment program, or CHOPD. The goal was to alleviate the financial strain from disruptions to Medicare reimbursement, the report said.From March through Jul

AHIP urges Congress to extend ACA tax credits ahead of Senate vote
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AHIP urges Congress to extend ACA tax credits ahead of Senate vote

AHIP urges Congress to extend ACA tax credits ahead of Senate vote America’s Health Insurance Plans also responds to GAO report on fraud risk in the program. Population Health By Susan Morse , Executive Editor | December 9, 2025 | 10:08 AM Photo: Joe Daniel Price/Getty Images As Senate Republicans struggle to unite on a healthcare plan to replace Obamacare, AHIP, America’s Health Insurance Plans, is urging an extension of the enhanced premium tax credits that help beneficiaries afford plans in the Affordable Care Act marketplace.“With open enrollment underway and 24 million Americans facing the largest-ever spike in health care costs in 2026, Congress should take bipartisan action to preserve the health care tax credits and further strengthen program integrity,” AHIP said.Senate Democrats on Thursday are expected to vote on a three-year extension of  the ACA tax credits, according to The Hill.  Republicans are reportedly trying to coalesce around their own healthcare plan to present at a Republican conference today. Senate Majority Leader John Thune (R-S.D.) told reporters Monday that Republicans won’t necessarily put up a GOP healthcare alternative for a vote on Thursday, according to The Hill report.WHY THIS MATTERSAHIP also responded to a December 3 fraud risk report released by the Government Accountability Office. “So far, we've found that fraud risks have persisted since we first reported on this (2014-2016),” the GAO said. “For example, we were able to get subsidized insurance for fake enrollees. We also found some issues with enrollees' Social Security numbers that could indicate identity fraud.”AHIP offered integrity measures such as multi-factor authentication and other “common-sense reforms” to prevent unauthorized enrollment. It also recommended stronger eligibility checks as consumers move between Medicaid and ACA marketplace coverage.Bipartisan program integrity reforms are currently under consideration in Congre

Humana upgraded by Jefferies on insurer’s Medicare Advantage diversification strategy
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Humana upgraded by Jefferies on insurer’s Medicare Advantage diversification strategy

Humana upgraded by Jefferies on insurer’s Medicare Advantage diversification strategy Humana has the ability to grow MA membership while diversifying into higher star-rated plans, analyst says. Business Intelligence By Susan Morse , Executive Editor | December 8, 2025 | 11:05 AM Photo: Raymond Gehman/Getty Images Humana has been upgraded by Jefferies based on its diversification strategy for its Medicare Advantage offerings.The upgrade reflects Humana’s success in strengthening its Medicare Advantage portfolio and improving the quality mix of its plans, according to Jefferies analysis.On X, Jeffries stock analyst and Managing Director David Windley said, "Our H-contract–level analysis of Humana’s Stars diversification effort increases our 2026 and 2027 earnings per share estimates to approximately $14.19 and $24.10 (consensus $12.37 and $19.47). High voluntary churn (around 15%) and significant 2026 share gains should drive even greater Stars diversification than previously expected. Even assuming roughly 2.4 million gross new members onboard at a –1% margin and increasing the headwind from value-based contracting to 100 basis points (from 30 basis points), we now view the risk/reward as attractive. We upgrade to Buy."Jeffries’ analysis points to a meaningful increase in Humana’s forecasted earnings for 2026 and 2027, Seeking Alpha said. Humana’s projected 2026 and 2027 earnings per share of $14.19 and $24.10, respectively, is above estimates of $12.37 and $19.47.WHY THIS MATTERS“The upgrade hinges on the view that Humana’s ability to grow membership while diversifying into higher-rated plans -- those with higher Star Ratings -- will materially enhance profitability, even after factoring in margin pressures from new members and contracting risks,” Seeking Alpha said.Humana’s MA membership growth is expected to be 21% in 2026, driven by lower attrition and strong market share gains, the report said.The analysis assumes Humana will capture 35% of all new ind

Aetna offers providers prior authorization bundles for specific conditions
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Aetna offers providers prior authorization bundles for specific conditions

Aetna offers providers prior authorization bundles for specific conditions Once the medical prior authorization is approved, the associated medications will be automatically approved. Claims Processing By Susan Morse , Executive Editor | December 8, 2025 | 10:15 AM Photo: Diego Cervo/Getty Images Aetna has announced it is integrating pharmacy prescriptions and medical procedures into a single clinical review to streamline the prior authorization process.The prior authorization bundles are for condition-specific procedures, Aetna said. Previously, providers had to submit two separate prior authorizations, such as one for medical procedures such as vitro fertilization (IVF) and one for related medications under the Aetna pharmacy plan. As of November 2025, providers may file the medical prior authorization and, if approved, the associated medications covered under the Aetna pharmacy benefit will be automatically approved.Aetna said it is one of the first, large national healthcare payers to integrate pharmacy prescriptions and medical procedures into a single clinical review.WHY THIS MATTERSAetna, which is part of CVS Health, said it is leveraging its clinical, pharmaceutical and technological expertise to support the company’s  strategy announced in June to remove friction in the healthcare system, specifically the payer-provider experience. Aetna said the prior authorization process has an important role to play in promoting quality care and managing health insurance coverage.“Aetna committed to several bold actions earlier this year that were intended to improve the American healthcare industry and I’m proud of the progress we’ve made against these commitments,” said Aetna President Steve Nelson.  “Working in partnership with stakeholders across the industry, I am optimistic that we can achieve our shared purpose of simplifying the healthcare system to make it easier for consumers to navigate and access affordable, personalized solutions.”T

IonQ Expands in EU With Slovakia’s First National Quantum Communication Network
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IonQ Expands in EU With Slovakia’s First National Quantum Communication Network

IonQ Expands in EU With Slovakia’s First National Quantum Communication Network Partnering with the Slovak Academy of Sciences, IonQ bolsters national security and European quantum communications infrastructure COLLEGE PARK, MD – December 8, 2025 – IonQ (NYSE: IONQ), the world’s leading quantum company, through its subsidiary ID Quantique (IDQ), today announced the deployment of Slovakia’s first national quantum communication network. Developed in partnership with the Institute of Physics, Slovak Academy of Sciences (IPSAS), the new system features a resilient hybrid architecture designed to strengthen the country’s cybersecurity infrastructure and support Europe’s quantum digital programs. The Slovak Quantum Communication Infrastructure (skQCI) project represents a major milestone in Slovakia’s contribution to the European Quantum Communication Infrastructure (EuroQCI) initiative, which seeks to establish a secure quantum-resistant communication backbone covering all European Union (EU) member states and territories. By integrating quantum-safe technologies at a national scale, Slovakia will directly reinforce the security of its most critical institutions. “The skQCI project is a strategic milestone in fortifying the digital sovereignty of the EU,” said Niccolo de Masi, Chairman and CEO of IonQ. “By combining IonQ’s quantum-safe networking capabilities with the scientific leadership of the Slovak Academy of Sciences, we are building a secure, resilient, and state-of-the-art quantum communication network that can serve as a model for Europe.” The system will connect multiple metropolitan and remote sites through a state-of-the-art QKD (Quantum Key Distribution) architecture ensuring secure data movement serving four strategic locations. This approach is complemented by a hybrid QKD–PQC (post-quantum cryptography) system for cross-country connection. “Joining forces on this initiative not only positions Slovakia at the forefront of quantum communication in Europe,”

What the rise in cyber insurance claims reveals about the vulnerability of UK businesses
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What the rise in cyber insurance claims reveals about the vulnerability of UK businesses

Share this article Copy Link Share on X Share on Linkedin Share on Facebook The UK faces a deluge of cybercrime, says Warren O’Driscoll, if more thoughtful strategies to deter cybercriminals are not adopted by the public and private sectors. (Photo: Joe Kuis / Shutterstock) UK cyber insurance claims tripled in 2024 – an increase attributable to a perfect storm of overlapping causes. Some of these relate to rising geopolitical tensions and threats, as MI5 Director General Sir Ken McCallum noted in his recent threat update. But others concern our own vulnerabilities. “We can’t rely solely on investigating and disrupting,” McCallum said, exhorting the public and private sectors to shore up their defences against an onslaught of cybercrime. “Together we have to ensure the UK is a hard target.” Many UK organisations, the MI5 chief continued, still lack the “simple and effective controls” required to protect our economy and society. Meanwhile, those threats continue to grow. We’re witnessing the industrialisation of ransomware services and the leveraging of AI to make phishing and social engineering attacks more convincing and harder to identify. Technologies including AI are also making it easier and quicker for threat actors both to find ‘zero-day vulnerabilities’ – weaknesses unknown to a system’s operators – and to exploit them. As McCallum warned, we face “risks from non-human, autonomous AI systems which may evade human oversight and control.” Cyber insurance claims an indicator of deeper problem Another weak spot lies in the complex supply chains operated by many organisations today. We’ve seen numerous examples of vulnerabilities lying in the operations of companies commissioned by sub-sub-contractors of our own clients, or even further down the chain. Without effective oversight and management, these can lead to easy backdoor access for threat actors. The push by procurement and finance teams over recent years for low-cost back office services has created fu

A strong data foundation for your digital twin is non-negotiable
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A strong data foundation for your digital twin is non-negotiable

Share this article Copy Link Share on X Share on Linkedin Share on Facebook A digital twin is only as good as its data, argues Informatica’s Greg Hanson. (Image: Gorodenkoff / Shutterstock) It’s a universal truth that the more accurate your data management, the more accurate your data-driven insights. This maxim is at its most apparent when those insights are powering frontline operations, whether in logistics, energy, or large-scale manufacturing.   Digital twins have emerged as one of the most powerful ways to turn this operational data into intelligence. Essentially, they act as sophisticated virtual replicas of physical systems like factory lines, shipping fleets or depot networks. When fed with high-quality information, these models can predict maintenance needs, optimise production processes, accelerate sustainability goals, reduce costs, and improve output quality. And adoption is rising fast, with at least 70% of industrial companies expected to have at least one digital twin in operation by 2026.  But building a digital twin doesn’t guarantee impact. Without the right trusted unified data at their core, digital twins risk becoming noise rather than intelligent decision-making engines.  In most cases, the challenge isn’t a lack of data from sensor readings and system logs but an inability to parse it. For example, raw sensor signals like pressure, vibration, and temperature may signal what is happening, but not why, or what action should follow. A digital twin needs deeper, trusted context if it’s to become a true decision-making engine. Digital twins that work This is where master data and metadata play a critical role. The former captures the core business entities and processes, including assets, equipment hierarchies, parts, and suppliers, while metadata provides a broader view of how systems, applications, and data sources are connected. Together, they supply the meaning and relationships that elevate digital twins from mon