The greatest threat to nonprofit hospitals’ operations and cash flow isn’t cost pressures, but policy uncertainty and “significant structural changes to federal healthcare spending” under recently passed legislation, Fitch Ratings warned in a new report. The agency’s latest report, compiling the audited fiscal year 2024 data of its rated nonprofit hospitals and health systems, generally brought good news on the sector’s financial health. Median operating margins among these organizations rose from 0.4% in fiscal 2023 to 1.1% in fiscal 2024—an expected recovery trajectory Fitch attributed to reduced reliance on contract labor and patient volumes for most providers “at or well beyond pre-pandemic levels.”
Read the full article: Nonprofit Hospitals’ Improving Finances Will Likely End After Fiscal 2025, Fitch Predicts //
Source: https://www.fiercehealthcare.com/providers/nonprofit-hospitals-improving-finances-will-likely-end-after-fiscal-2025-fitch-predicts