With H.R. 1 — the “Big, Beautiful Bill” — now signed into law, hospitals and health systems are bracing for the financial impact. The legislation includes sweeping changes that will impact Medicaid, ACA subsidies, and federal healthcare funding. While its stated goal is federal deficit reduction, many providers and hospital advocacy groups expressed concern that the legislation imposes significant funding and operational constraints on hospitals. Among the most critical: over $1 trillion in Medicaid cuts over 10 years, mandatory work requirements, shortened retroactive eligibility, and new limits on reimbursement mechanisms used to support hospital funding at the state level.
Medicaid and Medicare already fall short of covering the true cost of care. According to the AHA, hospitals absorbed $130 billion in underpayments in 2023 from these programs, a figure growing at an average of 14% per year. Meanwhile, Medicare Advantage plans have further squeezed hospitals, with cost-based reimbursement dropping nearly 9% between 2019 and 2024, while denials and delays have only increased. With its potential to compound these pressures, the new law is prompting many revenue cycle leaders to take a harder look at where dollars are slipping through the cracks — and how to get them back.
Focused Efforts that Strengthen the Foundation
Revecore is helping hospitals prepare by focusing on what they can control. That starts with strengthening revenue recovery processes to ensure no dollars are left behind — including underpaid and zero-balance accounts, complex claims (motor vehicle accidents/TPL, worker’s compensation, and VA), and preventable denials. We also support our clients with payer contracting insights, legal resources, and guidance around policy changes that may impact billing or eligibility. Revecore is committed to helping our clients build a stronger foundation — one that improves cash flow, reduces administrative burden, and provides a proven measure of stability as hospitals face hard decisions ahead.
Takeaways for Revenue Cycle Leaders
- Hospitals will see increases in uninsured care and reduced public payer reimbursement.
- Medicare and Medicare Advantage underpayments are growing — and administrative burden to providers is worsening.
- Driving revenue recovery and optimizing internal resources demands partnering with experts like Revecore, who leverage differentiated technology which is empowered by predictive AI/Data Science software which rapidly learns from changing trends, focused on aggressively addressing underpaid, denied, and complex claims
- The smartest moves right now are proactive: invest in partnerships and tools that deliver fast, accurate results and support financial stability.
Move quickly to tighten up revenue recovery strategies.
We’re ready to help you build a stronger foundation. Let’s talk about how we can support your team through this period of change.