Medical Economics December 5, 2025
Austin Littrell Fact checked by: Keith A. Reynolds

Key Takeaways

  • Medicare’s hospital sector shows stability with increased service use and improved financial indicators, including strengthened margins and solid access and utilization.
  • MedPAC recommends updating hospital payment rates and adding $1 billion for hospitals serving low-income beneficiaries, using the Medicare Safety-Net Index (MSNI) for allocation.
  • Quality measures are mixed but stable, with improved risk-adjusted mortality and slightly increased readmissions, while patient-experience scores remain below 2019 levels.
  • Rural emergency hospitals receive enhanced payments, and site-neutral payment policies are supported for expanded application across care settings.

Commission cites stable access and strengthening finances, urges targeted support for hospitals caring for more low-income Medicare patients.

Medicare’s hospital sector remains stable, with rising service use and improving financial indicators, according to...

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