Non-profit hospitals performed better financially in 2024 than they did in 2023, according to a new analysis by Fitch Ratings.
Attributing the improved performance to improved volume and revenue and reduced upward pressure on labor costs, Fitch found that the median operating margin among non-profit hospitals rose from -0.5 percent in 2023 to 1.2 percent in 2024.
Although improved, non-profit hospital financial performance has not returned to its pre-pandemic levels. Even so, they appear to have survived the unwinding of increased pandemic-era Medicaid enrollment, with Medicaid’s median share of their gross patient revenue declining only from 16.6 percent to 16.2 percent.
Learn more about how non-profit hospitals fared financially in 2024 and the obstacles they face to continued financial improvement in 2025 from the Fitch Ratings news release “U.S. NFP Hospitals See Margin Improvement, but Challenges Mount.”