Labor challenges slowing nonprofit hospital recovery—Fitch

Labor challenges slowing nonprofit hospital recovery—Fitch
Modern Healthcare
December 5, 2023
Nonprofit hospitals and health systems are recovering financially but more slowly than expected, according to a report Fitch Ratings published Tuesday. Much of the sector has broken even in operations on a month-to-month basis in 2023, but it happened later in the year and to a lesser extent than analysts anticipated, the credit ratings agency reported. Labor costs, although softening, remain the top pressure point. Fitch is keeping the nonprofit hospital sector in the “deteriorating” category. Downgrades have outpaced upgrades by about 3-to-1 so far in 2023. Negative rating outlooks grew from 8.9% in 2022 to 10.7% this year. ... In 2024, operational success will largely hinge on how well hospitals recruit and retain employees, Fitch concluded.