Hospitals should fare better financially in 2025, but system remains fragile
Chief Healthcare Executive January 8, 2025
Analysts from Fitch Ratings see reasons for optimism in the coming year. But they also don’t expect margins to return to pre-pandemic levels.
After a few trying years, nonprofit hospitals and health systems should continue to see improved financial performance in 2025.
Analysts from Fitch Ratings say they expect to see hospitals recording modest gains in their operating margins over the coming year. They see encouraging signs with labor pressures easing a bit and improved volumes. Fitch revised its outlook for nonprofit hospitals in December from “deteriorating,” a designation in place for more than two years, to “neutral.”
During a webinar Tuesday afternoon, Kevin Holloran and Mark Pascaris of Fitch Ratings outlined some of their reasons for optimism in 2025....