News Headlines Article

Health systems work to balance core operations with new ventures
Modern Healthcare

Healthcare providers—and all businesses for that matter—constantly debate whether to make short-term investments to maintain their core business or to put profits toward alternative revenue sources that hold potential long-term returns.

Those questions are even more pressing as health systems’ expenses climb and revenue falls. They’re also grappling with the reality of the hospital’s diminishing role as care—and revenue—shift to the ambulatory space. Investment income is keeping hospitals viable while operating margins wane, but spinning off new ventures can also be a potential buffer.