Chief Healthcare Executive November 19, 2024
Health systems should have a stable outlook in the coming year, although they face headwinds as the recovery from the pandemic continues. Labor and supply expenses should remain challenging.
Nonprofit hospitals should continue to see some financial improvement in 2025, but they will also continue to see difficulties with high labor costs, according to projections from Moody’s Ratings.
In addition, hospitals are going to need to invest more in cybersecurity, as ransomware groups target health systems, according to Moody’s.
Looking at the coming year, Moody’s projects a stable outlook for nonprofit hospitals and sees the median operating cash flow margin approaching 7%.
“But the pace of margin improvement is slowing, and not all hospitals have reached this level of profitability,”...
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