Report: Why not-for-profit health systems need positive margin

Not-for-profit health systems need positive operating margins to continue providing high-quality, equitable care in technologically advanced facilities and make investments to address consumers’ demands, according to a new report from Deloitte.

“Health system margins are the lifeblood of a healthy, patient-centered, innovative health care system and community,” the report concludes. “Claims that profits are not important in fact undermine the ability to fund the mission, serve the community, and deliver better, equitable care. Health system board members, executives, community leaders, and policymakers should focus first and foremost on their fiduciary responsibility to supporting a viable and innovative health care system over the long term.”