‘A pretty ugly picture’: Health systems brace for 2025

Becker's Healthcare December 20, 2024
Laura Dyrda

Hospitals and health systems reported slow margin improvement in 2024, and Fitch expects similar sluggishness in 2025. While some systems are reporting strong balance sheets, others see big financial headwinds in the coming year.

John Goodnow, CEO of Benefis Health System in Great Falls, Mont, told Becker’s one of his top goals for the next year will be remaining financially viable while inflation and the cost of doing business outpaces payer rate increases. More than 75% of the health system’s patients are covered by government payers: Medicare, Medicaid, Indian Health Services and Tri-Care.

“Having that high of a percentage of government payers (and that low of a percentage of commercial payers, approximately 20% at BHS) obviously makes the BHS financial...

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