Becker's Healthcare January 14, 2025
Hospitals and health systems are in the midst of financial recovery after the pandemic, but potentially bigger challenges loom in the next five years.
Margin growth has slowed and rising expenses continue to pressure health systems, especially those without strong cash reserves to invest in digital transformation and capital projects to stay afloat. Health systems in high growth margins are seeing patient volumes grow alongside the shift from inpatient to outpatient care, according to Fitch’s 2025 outlook published in December.
“To support this, capital spending is increasingly focused on IT and developing ambulatory networks, as improving access points is a top priority. It remains uncertain if healthcare operating margins will rebound to pre-pandemic levels, or if the ‘new normal’ will...
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