In recent years, many healthcare organizations have invested less effort in long-range financial planning to confront more immediate challenges to their margins and balance sheets.

Hospital financials continue to reflect a strong start to 2024, though the aftermath of the Change Healthcare cyberattack and continued competition from industry disrupters may test financial performance in coming months.

Since the late 1980s, financial planning has been a core focus of Kaufman Hall’s work. A recent leadership change emphasized the importance of financial planning to the for-profit corporate world. It should be given similar priority in the not-for-profit hospital universe.

Hospital financials proved strong in January compared to previous years, though margins declined slightly from the previous month.

Watch higher education sector leaders from Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings for an in-depth conversation on trends affecting rating actions in higher education today.

To successfully reduce length of stay, health system management will need to combine performance improvement efforts with efforts to successfully align themselves more closely with skilled nursing providers.

Following hospitals’ worst financial year since the beginning of the COVID-19 pandemic, 2023 presented a more promising trend for hospitals and health systems with general improvement across operational and financial measures.