Hospitals buck ‘deteriorating’ outlook: Fitch’s 2025 expectations
Becker's Healthcare December 10, 2024
Things are looking up for U.S. nonprofit hospitals and health systems headed into 2025.
Fitch revised the rating for U.S.-based nonprofit hospitals from “deteriorating” to “neutral” in a Dec. 9 report, anticipating continued financial improvements next year. Fitch forecasted a median operating margin of 1% to 2% “barring unforeseen shocks” as the patient volumes are strong in many markets and hospital leadership teams focus on increasing access and capacity.
But there are still struggles ahead and at the hospital level, with negative outlooks outpacing positive outlooks.
Five things to know:
1. Fitch expects operating margins to have a “slow but steady” rebound next year, although it’s unclear whether operating margins will return to pre-pandemic levels. The “new normal” may remain...