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…
Hospital financial performance strained by payer mix and rising costs
Hospital financial performance remained uneven in the second quarter as policy changes and broader economic pressures affected the not-for-profit (NFP) and for-profit segments. In the NFP sector, median health system operating margin ticked upward to 0.4% year-to-date (YTD) through May, according to monthly data from Strata Decision Technology. But the metric wasn’t quite as steady…
Health systems face margin cuts of up to 13 percentage points in next 5 years, McKinsey analysis shows
A combination of federal policy changes and industry trends could cut health systems' margins by up to 13 percentage points in the next five years, according to a McKinsey analysis.