A new report from Moody’s Investors Services reveals that for many non-profit and public hospitals, expenses continue to outpace revenue even as the transition to value-based care picks up. The median annual expense growth rate fell from 7.1% to 5.7% between 2016 and 2017, but revenue growth also fell – from 6.1% to 4.6%. “Drivers of the lower revenue growth include lower reimbursement rates, shift to outpatient care, increased merger and acquisition activity, and increased ambulatory competition,” the report highlights. “The lower expense rate was largely achieved through better control of labor and supply costs.”

You can read more about the report via FierceHealthcare here.