Health systems gauge financial strength on a variety of metrics, with one of the key indicators being days cash on hand. While the average days cash on hand has improved in the last year, according to Strata’s “Performance Trends Report: Market Insights from Q2 2025,” eminent changes to the Medicaid program could derail this progress.

Ten things to know: 1. Medicaid is typically the lowest reimbursing payer for healthcare organizations and systems serving a larger Medicaid population often have below average days cash on hand. 2. Days cash on hand has fluctuated over the last year; health systems nationally reported 112 days in June 2024 and at times dipped to 110 days before ending June 2025 at 128 days, a 12-month high. 3. Health systems reported on average, Medicaid accounts for 12% of

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