non-profit hospital financial performance

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 [...]

Non-profit hospitals should see generally improved financial performance in 2024, according to Moody’s Investor Services. Driving improved performance, according to the rating company, will be increased reimbursement that outpaces rising labor costs; increased volume, especially in the delivery of higher-margin outpatient care; and improved Medicaid payments in some states.  Also helping improve hospital financial performance will be better use of IT, more use of telehealth, improved workflow, and better use of external resources for improving revenue cycle management. Learn more about what Moody’s sees ahead for non-profit hospitals in 2024 from the Fierce Healthcare article “Nonprofit hospital sector to stabilize [...]