Can philanthropy make up for shrinking margins at nonprofit hospitals?

Advisory Board December 16, 2024

With hospital operating margins shrinking, many nonprofit health systems have started investing more in fundraising campaigns — often relying on big donors — and experts say philanthropy will likely play a bigger role in these health systems’ finances going forward, Alex Kacik reports for Modern Healthcare.

Resource library: Best practices in philanthropy

Shrinking margins and uncertainty at the federal level

Multiple factors have led many hospitals to ramp up their fundraising campaigns, Kacik reports. For example, tight reimbursement levels have stunted operating revenue growth for many hospitals.

According to Kaufman Hall, the national median hospital operating margin year-to-date in September was 4.3%, which is 13% lower than the operating margin during that period in 2021.

In addition, inflation rose for...

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