Hospitals

Fitch Warns Nonprofit Hospital Recovery May Have Reached Its Peak

According to a Fitch Ratings report based on audited fiscal 2025 data, nonprofit hospitals and health systems improved their operating margins for a third consecutive year, with the median margin rising to 1.5%. However, Fitch cautions that this recovery may be uneven and could peak in 2025, as Medicaid funding reductions and other policy changes are expected to strain hospital revenues more significantly in 2027, particularly for financially weaker and Medicaid-dependent providers.