Hospitals face ‘stable but shaky’ 2025: 7 expectations from S&P

Becker's Healthcare December 13, 2024
Laura Dyrda

S&P Global predicts a “stable but shaky” 2025 for the nonprofit acute healthcare sector as revenue and demand for services remain strong, but challenges and uncertainty persist.

“Hospitals and health systems have made strides on managing labor challenges. That said, higher expenses related to both staffing and benefits, as well as drug and supplies, require management teams to maintain aggressive annual operating initiatives,” the report authors noted.

Seven things to know:

1. S&P gave the sector a stable outlook as hospitals have been able to reduce labor-related and inflationary expenses. Most providers report improving margins, though they are still below pre-pandemic levels, and a trend toward increased capital spending may affect hospital balance sheets next year.

In 2024, a quarter...

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