DOTmed March 7, 2025
After a challenging few years post-pandemic, hospital and health system finances have slowly started to stabilize, with many providers entering 2025 in better shape.
Key metrics, such as operating margins, revenue, and length of stay, have shown signs of improvement for many health systems, particularly those in high-growth areas. In December 2024, credit ratings agency Fitch revised its outlook for U.S. nonprofit hospitals to “neutral” from “deteriorating,” citing “meaningful strides” in operating-margin improvements.
As a result, health system executives can finally breathe a sigh of relief that perhaps the worst is over. However, that doesn’t mean the industry is free of potential headwinds in 2025.
Rising operational and labor costs, declining reimbursement, and surging claim denials loom as significant challenges...
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