Healthcare DIVE March 31, 2025
The median operating margin for providers that ended their fiscal years early was 1.2% last year, compared with -0.5% in 2023. However, potential Medicaid cuts could strain provider finances.
Dive Brief:
- Nonprofit hospitals with early fiscal year end dates improved their financial performance in 2024 compared with 2023, according to an analysis published last week by credit rating agency Fitch Ratings.
- Providers that ended their fiscal year in the first half of 2024 reported operating margins of 1.2%, compared with -0.5% in 2023. The results are likely a bellwether for the sector’s performance across 2024, according to the agency.
- Although an improvement from 2023, the financials will likely remain “well below” pre-pandemic levels and providers could face further...
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