Moving From Red To Black

Stable margins—and long-term profitability—seem to be a moving target in the health and human services field. From community health centers to hospital systems and insurance giants, organizations are navigating a volatile financial environment. For outpatient health centers, margins peaked during the pandemic, thanks to COVID-related and other supplemental funding. Their margins fell to 1.6% in 2023 (see Community Health Center Patients, Financing, And Services). This drop, while still slightly above 2019 levels, signals a correction as pandemic aid winds down. But the margin decline is also due to increases in operational costs including payroll, medical . . .