Capex surges to highest since 2008
Hospital and health system capital expenditures in fiscal 2025 reached their highest since the start of the financial crisis in 2008, according to Fitch Ratings Capital expenditure (capex) as a percentage of depreciation expense surged to 142.7% in fiscal 2025, the highest since it was 154.4% in fiscal 2008, among the hospitals and health systems…
Fitch medians: 10 things to know
Improving hospital and health system operating margins in 2025 were among the findings in the latest Fitch Ratings medians. Here are 10 insights from the Fitch Ratings’ 2026 medians (subscription required), based on audited 2025 data of its 222 rated organizations:
Medicaid cuts prompt health systems to boost financial performance
Health systems are expected to aggressively pursue cost reductions and revenue improvements in anticipation of impending Medicaid cuts from the OBBBA in 2027, which could lead to increased bad debt, charity care, and M&A activity.