COVID-19 surge pressures nonprofit hospital margins

Nonprofit hospitals in COVID-19 hotspots are facing operational pressures that will negatively affect margins, according to an Aug. 27 Fitch Ratings analysis.

Hospitals and health systems in areas where COVID-19 hospitalization rates are peaking require additional supplies and staffing to treat the influx of patients. Many of these hospitals are postponing elective nonemergent surgeries and competing for a limited supply of nurses, resulting in lower revenues and higher expenses, according to Fitch. 

"Elective volumes, which until recently were expected to continue to slowly return to pre-pandemic levels and boost margins, are once again an uncertainty for the sector, and will likely constrain operating margins in 2021, particularly with no additional federal stimulus or support to offset incremental operating expenses or lost revenue," Fitch said. 

Read the full analysis here.

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