NEWS

After years of financial turbulence, large health systems are finding their footing again. Higher patient volumes, smarter cost management, and robust investment returns combined to strengthen margins across the nonprofit sector in 2025. Many systems that were barely breaking even two years ago are now reporting operating margins in the 5% to 6% range.

The federal government is making an unprecedented bet on rural health care. Through the RHT program, the U.S. Centers for Medicare and Medicaid Services (CMS) has committed $50 billion over five years, with $10 billion allocated annually beginning in fiscal year 2026. Each state received an average first-year award of $200 million, with totals ranging from $147 million to $281 million, depending on rural population size and health system need.

The federal government has a new investigative partner, and it never sleeps. Key Takeaways Record recoveries —The DOJ recovered more than $6.8 billion through False Claims Act (FCA) settlements and judgments in fiscal year 2025, the highest annual total in the statute's history. AI is now a core enforcement tool —Federal prosecutors used artificial intelligence in 315 cases in 2025, a 31% increase from the prior year, enabling investigators to identify billing anomalies at un