Children’s Hospitals Must Act Now to Protect Their Future

Children’s hospitals have taken a financial hit during the COVID-19 pandemic. Yet, warning signs were there pre-pandemic that many were struggling. Now, leaders face an urgent need to assess enterprise risk and determine the next steps to protect their futures. Children’s hospitals are walking a tightrope, balancing what’s best for their patients with financial stewardship to ensure their assets can provide for their communities.

For the past three decades, operating challenges for children’s hospitals have been increasing. The delivery of pediatric care has shifted to outpatient settings while community health systems have bolstered their pediatric service lines to capitalize on the advantages of operating a NICU. These two changes have tightened revenue-generating opportunities for many children’s hospitals.