Why 40% of hospitals are still losing money, according to CFOs

Becker's Healthcare September 18, 2024
Alan Condon

As hospital margins gradually improve across the industry, a significant divide remains between higher- and lower-performing hospitals, with nearly 40% of facilities still operating in the red, according to Kaufman Hall. Multiple factors are contributing to this growing divide, including market positioning, payer mix, depth of outpatient services and the management of contract labor.

In an interview with Becker’s, Robert Broermann, CFO of Sentara Healthcare, and John Beaman, CFO of Adventist Health, shed light on the key factors driving this divergence, the growing importance of market positioning and how this trend will impact hospital consolidation.

Editor’s note: Responses have been lightly edited for length and clarity.

Question: While operating margins are improving on average, 40% of hospitals are...

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