Report: Weak Margins Threaten Survival of Smaller Not-for-Profit Hospitals

A new report by A.M. Best puts the survival of many small and midsize not-for-profit hospitals in question, due to lack of economies of scale, poor payor mix, higher overhead costs, fewer high-margin specialty service lines and an overall lower revenue base, according to a release from A.M. Best.

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The report says that when these hospitals get into financial distress, they have been forced to discontinue service lines, close, merge or consider entering into joint ventures with larger hospitals, health systems, physicians and private investor groups.

These hospitals can brighten their future by improving their facilities, equipment and information systems, but tighter access to financial markets in the past year has made that more difficult, the report adds.

Read the release on the A.M. Best not-for-profit hospital report.

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