In today’s tumultuous economic climate, hospital and health system leaders must continuously reposition their balance sheet for long-term operational sustainability, Eric Jordahl, managing director of treasury and capital markets at Kaufman Hall, wrote in a May 13 commentary.
Though the PHE is now in the rearview mirror, reverting to a 2019 world is not on the cards, so restructuring is the only option, according to Mr. Jordahl. Though recent reports show signs of improving margins, they remain far below historical norms and workforce expenses continue to challenge hospitals’ bottom lines.
“Where we are is not sustainable and waiting for a reversion is a rapidly decaying option,” Mr. Jordahl wrote. “The journey of transforming operations is going to require very careful planning about how to size, position and deploy liquidity, leverage and investments.”
Click here to read the full commentary.
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