Nonprofit Healthcare

Nonprofit organizations have historically played, and continue to play, a significant role in the delivery of healthcare services in the United States. It is estimated that about 60 percent of community hospitals, 30 percent of nursing homes, and 17 percent of home health care agencies are nonprofit. While these organizations constitute an important component of the American healthcare system, their future remains uncertain due to the adverse effects of economic and regulatory forces.

“Nonprofit hospitals that posted operating losses during the COVID-19 pandemic have been hit by higher labor and supply costs in addition to investment losses and declining or neutral admission volumes.  Last year was one of the “worst years ever” for nonprofit hospitals”, Kevin Holloran (Senior Director, Fitch Ratings) said.

“Labor will remain the largest hurdle for hospitals even as they struggle with inflation.  The labor story just dwarfs the inflation story,” Holloran said.  Systems have been forced to turn to staffing agencies for contract labor amid shortages. Some burned out healthcare employees and others have gone on strike to demand higher wages and better working conditions, or left the profession entirely.

“There is no short-term fix for labor shortages, only medium- and long-term fixes, as expenses continue to rise and revenues stagnate or decline”, the senior director said. Labor costs are expected to remain elevated for several years and hospitals are putting recruiting and retention efforts in high gear amid challenges.  Healthcare organizations must devise a game-changing strategy that can help them stay competitive and productive.

Utilizing our diverse experience and in-depth expertise, we help nonprofit healthcare organizations achieve sustainable results by helping them attract, inspire, and retain health professionals, as well as community leaders who are self-motivated to work for the health and wellbeing of society.


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