The profitability of U.S. hospitals is at its lowest level since the 2008 financial crisis, increasing the urgency for health systems to undertake significant efforts to tackle their high fixed costs.
The challenge facing hospitals was recently underscored in a report by Moody's Investors Service that revealed that median operating cash-flow margins, a key measure of profitability for both not-for-profit and public hospitals, declined to 8.1 percent in 2017 from 9.5 percent a year earlier. At the same time, the growth of expenses was faster than revenue growth.
