Tough Labor Market Holds Fitch’s Nonprofit Hospital Outlook at ‘Deteriorating’

Nonprofit hospitals will continue to operate under a cloud of labor supply shortages and “pressured” margins into 2024, setting the coming 12 months up as another “make or break year” for the sector, Fitch Ratings wrote in a new outlook report for 2024. Labor spending, the group wrote, “has emerged as the single most meaningful differentiator between operational success and failure” and will remain pressured “for the foreseeable future yet slowly resolve, with the expectation for added incremental operational recovery in 2024.” A subset of providers, however, are still expected “to lag significantly behind any recovery.”

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Source: https://www.fiercehealthcare.com/providers/tough-labor-market-holds-fitchs-nonprofit-hospital-outlook-deteriorating

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