March 09, 2023
The nation’s hospitals and health systems continue to navigate a challenging financial environment, with operating margins lagging behind pre-pandemic levels and expenses remaining elevated.
A new report from Fitch Ratings reviews data from hospitals with a mid-year fiscal year end and notes that the decline in operating results could be even more pronounced for hospitals with a later fiscal year end. Those facilities “bore the full brunt of intensifying financial pressures in 2022,” Fitch reported.
“Audited results show materially weaker profitability and liquidity relative to FY (fiscal year) 2021 due to expense increases and investment market losses,” the report notes.
Among the key takeaways:
HAP continues to highlight hospitals’ financial strain while advocating for additional resources and support to ensure they can remain anchors within their communities.
The Fitch Ratings report is available to review online.
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