Nonprofit hospital outlook improves, but headwinds remain, Fitch Ratings says

Chief Healthcare Executive December 10, 2024
Ron Southwick

Fitch has revised its outlook for the sector from ‘deteriorating’ to ‘neutral,’ but health systems still face cost pressures.

For the first time in over two years, Fitch Ratings has revised its outlook for nonprofit hospitals.

Looking at 2025, the outlook for the nonprofit hospital sector has improved from “deteriorating” to “neutral,” Fitch said in a report issued Monday. Fitch assigned the “deteriorating” outlook for nonprofit hospitals in August 2022.

Now, hospitals are showing some improvement and Fitch is forecasting better operating margins for the coming year. But hospitals continue to face substantial cost pressures and margins are expected to remain below pre-pandemic levels, according to Fitch.

While hospitals still are dealing with higher costs, they are faring better financially,...

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