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Responses to Kaufman Hall’s 2023 “State of Healthcare Performance Improvement” report indicate ongoing concern regarding covenant challenges in 2024. Organizations need to understand the causes of covenant misses and near misses and build a durable financial plan for the future.

Explore the current state of health system growth and performance measurement; progress the industry has made in adopting consumer-centric, relationship-focused metrics; the barriers they face; and the types of decisions and strategies that arise from taking a more consumer-centric approach.

While hospitals’ overall performance declined slightly in September compared to the previous month, the median Kaufman Hall Calendar Year-To-Date Operating Margin Index reflecting actual margins was 1.4% in September.

Physicians are operating at record-high levels of productivity compared to recent years but receiving less pay per unit of work. The median investment/subsidy per provider continues to increase, but the pace is slowing with only a 1% change from Q3 2022 to Q3 2023.

Some institutions have addressed the tuition pricing problem by instituting across-the-board tuition resets. A better approach is one that combines evaluation of the competitive landscape with a careful analysis of the institution’s current academic product mix.

Hospitals and health systems are seeing some signs of stabilization in 2023 following an extremely difficult year in 2022. Workforce-related challenges persist, however, keeping costs high and contributing to issues with patient access to care.

With 18 announced transactions, Q3 2023 continued the momentum in activity we have seen throughout the year. A high percentage of financially distressed organizations in this quarter’s transactions reflected the impact of challenging operational and financial headwinds.

Today, the commercial group health insurance market is hollowing out, primarily driven by affordability pressures that have been building for decades.

Before you can establish the organizational thought platform that best guides your hospital forward, you will need a leadership team that is committed to creating a “listening and learning” healthcare company.

While hospital operating margins remain below historical levels, overall conditions have stabilized in 2023. The median Kaufman Hall Calendar Year-To-Date Operating Margin Index reflecting actual margins was 1.1% in August.

Higher education is facing a crisis of confidence in the value of a college degree, with risk implications for enrollments, tuition pricing, and capital spending. Avoiding these risks begins with finding and quantifying the appropriate “corridor of control” for your institution.

Despite significant volatility in the capital markets and operating and financial headwinds in the healthcare industry, medical office buildings are holding their own as attractive investment opportunities, according to our survey of a diverse range of real estate investors.