Chief Healthcare Executive March 23, 2025
While the financial pressures facing hospitals are vast, there are clear steps that can be taken to improve operational efficiency and strengthen margins.
Managing hospital margins has always been a complex and daunting task, with a mix of factors adding pressure from every angle.
Inflation may be the most obvious culprit, but it’s far from the only one. Poor reimbursement rates and persistent staffing challenges create additional hurdles, making it harder for hospitals to stay financially stable.
A recent study cited 84% of health systems pointing to lower reimbursement as a top cause of lower operating margins and 96% of health system CFOs naming higher labor costs as the biggest drivers of margin pressure. These dynamics not only strain operational...
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