Healthcare DIVE November 22, 2021
Dive Brief:
- Pressure on U.S. hospital margins is intensifying as a scarcity of workers drives up labor costs and supply chain problems ripple across the healthcare sector, according to a report out Friday from Fitch Ratings.
- Healthcare and pharmaceutical companies have survived the coronavirus pandemic thus far with their credit profiles largely intact. Now, wage inflation and supply chain disruptions signal the potential for lost revenue and greater margin pressure in the near term as costs rise, the ratings agency said.
- Staffing challenges are especially acute in skilled nursing, senior housing and in-patient behavioral health, posing a greater risk to recovery for the hardest hit operators as the pandemic stretches on, according to the report.
Dive Insight:
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