Hospital margin pressures mount, outlook ‘not encouraging’

Becker's Healthcare January 7, 2025
Laura Dyrda

Health system operating margins dropped slightly in November for the fourth month in a row, according to data from Strata Decision Technology.

“Our data reflect mounting financial pressures for hospitals and health systems as they neared the end of 2024,” said Steve Wasson, chief data and intelligence officer at Strata Decision Technology. “The persistent margin decreases for health systems throughout much of the second half of the year are particularly concerning. December’s data will provide greater clarity as to whether these pressures will continue into 2025, but the outlook at this point is not encouraging.”

Five things to know:

1. Median year-to-date operating margins dropped to 1.7% in November from 1.8% in October. Year-to-date hospital operating margins also dropped to...

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