Hospital labor costs rocketed over the last four years, hitting margins and cash flow hard, according to Moody’s. And the problem isn’t going away any time soon. “The steep rise in healthcare wages over the last three years remains a structural problem and credit risk for the hospital industry,” states Moody’s Oct. 15 report on hospital financial performance. “While the wage growth rate will remain low in 2025, average hourly earnings will continue to top prior years. Reimbursement increases from payors, particularly government ones will not keep up with higher wages.”
Read the full article: Hospital Operating Margins to Stay Low in 2025: Moody’s //
Source: https://www.beckershospitalreview.com/finance/hospital-operating-margins-to-stay-low-in-2025-moodys.html