Not-for-Profit Hospitals and Health Systems Market Update

This report provides an update on the not-for-profit hospitals and health systems market as of February 2024. It outlines the anticipated improvement in the industry outlook for 2024, driven by increasing patient volumes and stabilizing labor costs. The report indicates that operating margins improved at the end of 2023, with a median operating margin of 2.3%. It discusses the ongoing challenges related to labor costs and the impact of cybersecurity threats, noting that 2023 was marked by a significant increase in cyber attacks against healthcare providers. The report also highlights the slower growth of healthcare expenditures compared to the overall economy, with health insurance costs projected to rise in 2024. Additionally, it mentions the public finance market's slowdown in 2023 and the expected increase in municipal bond issuances in 2024. Overall, the document presents a comprehensive view of the current state and future expectations for the not-for-profit healthcare sector.