Pennsylvania’s Ambulatory Surgery Center Finances are Examined in New Report

The Pennsylvania Health Care Cost Containment Council (PHC4) releases Financial Analysis 2025 – Volume Two, presenting a profile of Pennsylvania’s ambulatory surgery centers (ASCs) during fiscal year 2025 (FY25). Volume Two examines the financial health of Pennsylvania’s ASCs and provides insight into outpatient visits, net patient revenue, operating income, and total income. Volume Two includes statewide and regional analysis based on data submitted by ASCs for each fiscal year.

The report examines 282 ASCs licensed in the Commonwealth of Pennsylvania that operated during at least part of FY25. This represents a decrease from the 287 ASCs operating during FY24. Between the two reporting periods, 14 ASCs closed while nine opened, resulting in a net decrease of five operating ASCs.

  • Net Patient Revenue: The statewide net patient revenue Pennsylvania ASCs received for patient care increased 1.4% from $2.11 billion in FY24 to $2.14 billion in FY25. The average outpatient revenue per visit for ASCs during FY25 was $1,711 vs. $1,602 in FY24.
  • Patient Volume: Pennsylvania’s ASCs reported a 5.1% decrease in the total number of outpatient visits from 1.32 million in FY24 to 1.25 million in FY25. Approximately 992 thousand major surgical outpatient procedures were performed at ASCs during FY25. These outpatient surgical procedures at ASCs during FY25 represented 33.3% of the total number of major outpatient surgical procedures performed in Pennsylvania. The remaining 66.7% were performed at general acute care hospitals outpatient departments.
  • Margins: The statewide operating margin realized by the ASCs decreased 2.18 percentage points, from 29.52% in FY24 to 27.34% in FY25. The statewide total margin realized by the ASCs decreased 2.13 percentage points, from 29.35% in FY24 to 27.22% in FY25.

PHC4 is an independent council formed under Pennsylvania statute (Act 89 of 1986, as amended by Act 15 of 2020) in order to address rapidly growing health care costs. PHC4 continues to produce comparative information about the most efficient and effective health care to individual consumers and group purchasers of health services. In addition, PHC4 produces information used to identify opportunities to contain costs and improve the quality of care delivered.  For more information, visit phc4.org or review the full report here.

Survey: Philadelphia Region Small Businesses Are Slower to Adopt AI

As artificial intelligence (AI) adoption grows nationwide, small businesses in Delaware, New Jersey, and Pennsylvania are slower to adopt the technology, according to the Fed’s Small Business Credit Survey.

Below are some key findings:

  • Firms in Delaware, New Jersey, and Pennsylvania — the three states of the Fed’s Third District — have adopted AI at a lower rate than the U.S. overall (37 percent versus 46 percent), with most adopters describing themselves as still “experimenting” rather than fully integrating the technology.
  • Writing/marketing, individual productivity, and planning/analysis are the top AI use cases among regional adopters.
  • While 71 percent of firms reported productivity gains, over 70 percent saw no change in labor costs, sales, or production quality — suggesting AI hasn’t yet reshaped core operations or reduced headcount.

Read more.

An Accurate Census Count Matters for Pennsylvania Children

The U.S. Census Bureau continues to make changes ahead of the 2030 Census. However, a new rule proposed on September 10, Decennial Census of the Population of Americans; Proposed Residence Criteria and Proposed Regulations for Demographic Questions, would dramatically change the administration of the decennial census.

In addition to being the foundation of political apportionment and representation, the population count in each decennial census is the common denominator in nearly every aspect of public life. This proposed rule would change how “usual residence” is determined, the criteria that set standards to ensure that everyone is counted in the right place. Choosing to rely primarily on tax records would impact several groups such as military families, college students, hospitalized people, foster children, and families in shared or complex living arrangements. Additionally, the proposed three-month period for determining residence is not consistent with the statute that requires that residence be determined as of April 1 of that year.

The new rule also proposes to exclude some noncitizens from congressional apportionment counts. This is inconsistent with constitutional mandates and could have a chilling effect more broadly on the accuracy and completeness of the decennial census. It also proposes removing race and ethnicity questions from the decennial census form, meaning the U.S. will no longer have data on race and ethnicity for its entire population.

These proposed changes raise important questions about ensuring a complete and accurate count for children and other historically undercounted populations. The proposal would increase the number of children who would not be counted, which will have potentially devastating impacts on funding for children.

Our work to advance equitable policy solutions and prioritize the well-being of Pennsylvania children and families is as important as ever. The U.S. Census Bureau’s decennial census and its surveys produce critical, timely data about the demographic, housing, financial, and social characteristics of our nation and state communities. We need these resources to achieve our goals and mission at PPC.

The goal of every census is to “count everyone once, only once, and in the right place.” Under these proposed rules, people will not be counted and the fallout from losing an accurate count of the population will be severe.

Head Start Receives Federal Funding Boost Amid Proposed Changes

Congress recently passed a continuing resolution (CR) to fund the federal government through December 11, avoiding a potential government shutdown when the current fiscal year ends September 30. President Trump signed the measure into law on September 2.

The CR continues federal programs at current funding levels while Congress works to complete the Fiscal Year 2027 appropriations process. For programs serving children and families, the agreement provides important short-term stability but does not resolve decisions about funding for the rest of the fiscal year. The temporary funding comes as Head Start continues to face significant federal policy uncertainty. Last month, the Department of Health and Human Services (HHS) proposed changes to Head Start performance standards that could weaken important protections and services for children and families.

At the same time, HHS recently announced more than $225 million in supplemental Head Start funding nationwide. The investment includes more than $89 million to strengthen nutrition services, $88 million for facility improvements, and more than $47 million to help programs address one-time operational needs.

While these investments are welcome, the threat of the proposed rule for Head Start programs, which would roll back critical protection for children and families, looms. Our partners at Start Early created a link tree with resources for advocates to protect Head Start’s future. It Includes analyses and takeaways from the proposed rule, event recordings and trainings, and a multitude of comment templates for individuals wishing to submit written opposition to the proposal, which are due October 6.

Pennsylvania Dentist Shortages Highlighted in the News

The Erie Times-News published an article this week highlighting the dental workforce shortages in the Erie area and Pennsylvania as a whole. The article featured insight from Dr. James Mancini, the current president of the Pennsylvania Dental Association. The article also includes a map published by PCOH that shows the number of general dentists licensed in each county, according to 2025 dentist licensure survey data.

Click here to read the article.

The Importance of Rural Health Networks

Rural health providers have joined together to form rural health networks as a key strategy for more than 30 years, finding collective strength by working together.  Given their small size and scale, rural hospitals and clinics have relied on creating formal networks to build economies of scale to lower administrative costs and support clinical services.

Rural health networks have become more important in recent years as rural hospitals and clinics, particularly those that are independent.  This structure helps these small providers navigate an increasingly complex health care landscape.  Rural health networks can help their member hospitals and clinics take part in value-based care initiatives and find administrative and financial efficiencies while also supporting ongoing challenges such as recruiting and retaining clinicians.

As rural health networks have evolved to meet these challenges, FORHP has revised its grant programs to support these efforts.  This included a series of listening sessions with rural health networks in 2025 to gather information to craft new funding opportunities that support these activities.  Lessons learned from the FY 2026 funding cycle will inform a larger planned Notice of Funding Opportunity for rural health networks in FY 2027.

Update: CMS Guidance on RHC and FQHC Telehealth Billing Changes

Beginning October 1, 2026, Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) must bill the individual Current Procedural Terminology (CPT) or Healthcare Common Procedure Coding System (HCPCS) code for distant site telehealth services they provide instead of HCPCS code G2025.

The Centers for Medicare & Medicaid Services (CMS) publishes these codes annually along with Calendar Year (CY) Physician Fee Schedule (PFS) rule. RHCs and FQHCs must report the appropriate revenue code along with modifier 93 (audio-only) or 95 (audio-visual) to indicate the service was performed via telehealth.   

NTIA’s 2027 Internet Use Survey Open for Input

In this request, the NTIA seeks comment from the public and from other Federal agencies on a set of questions for the November 2027 edition of the Current Population Survey about whether and how citizens are using the internet.

The Internet Use Survey collects data on how people in the U.S. use computers, devices, and the internet.  The survey is conducted annually by the U.S. Census Bureau through its Current Population Survey on behalf of the National Telecommunications and Information Administration (NTIA).  The NTIA uses the data to inform policymakers, researchers, and the public.

Comment by November 9.

USDA WIC & FMNP Modernization Evaluation 2025 Annual Report Published

For this report, the U.S. Department of Agriculture (USDA) interviewed State agencies about their experiences implementing the USDA’s Supplemental Nutrition Program for Women, Infants, and Children (WIC) and the WIC Farmer’s Market Nutrition Program (FMNP). 

This is the second annual report on USDA’s effort to modernize these programs that go beyond standard food assistance known as SNAP – the Supplemental Nutrition Assistance Program – and provides benefit to low-income pregnant, postpartum, and breastfeeding women as well as children up to age five.  The evaluation includes feedback on efforts in rural communities.