Most nonprofit hospitals and health systems had enough cash on hand to cover operating expenses for an extended period of time in 2022, according to a new analysis from KFF. On average, hospitals and systems reported having 218 days of cash on hand in 2022 — S&P Global Ratings generally considers 218 days to be a “very strong” level of cash, according to the report. Nearly three-quarters of nonprofit hospitals had “strong” levels of cash on hand, while about one in 10 had “vulnerable” or “highly vulnerable” levels of cash on hand. The metric, which estimates the number of days that an entity could cover their cash expenses using available reserves, offers nuance to reports that show struggling nonprofit hospitals, the authors wrote.
Read the full article: Most Nonprofit Hospitals and Health Systems Had ‘Strong’ Cash Reserves in 2022, KFF Finds //
Source: https://www.healthcaredive.com/news/nonprofit-hospitals-health-systems-cash-on-hand-KFF/704064