Fitch Ratings Downgrades Nonprofit Hospital Outlook

Healthcare Finance

Citing investment losses, eroding margins, and labor challenges, Fitch Ratings has downgraded the nonprofit hospital outlook to “deteriorating.” This outlook, related to ongoing issues from the COVID-19 pandemic, staff shortages, and other inflationary pressures, reflects a rough 2022 and the likelihood of difficulties for nonprofit healthcare systems in the future. Business models will need to undergo significant changes to weather the coming months, including aggressive short-term cost management and longer term productivity improvements.

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