Despite the many challenges healthcare providers face today—including industry disruptors, reduced commercial reimbursement and declining inpatient volumes—nonprofit hospital margins are expected to rebound and stabilize in 2019, according to a new Fitch Ratings report. Analysts there indicated declines in nonprofit provider margins are often tied to a single event, such as a costly information technology (IT) purchase.
Other findings from the report’s analysis include:
The report also noted providers should start and continue seeing gains from short- and long-term cost-saving tactics taken in recent years, and that providers should allocate significant capital to either beating industry disruptors, such as Amazon, or partnering with them to innovate and remain competitive.
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