In today’s healthcare climate it’s becoming more challenging for hospitals to remain financially viable. This is especially true for stand-alone, independent hospitals. According to Moody’s researchers, median operating cash-flow margins of 160 surveyed hospital systems dropped from 9.5% in 2016 to 8.1% in 2017.[1] What’s causing the decrease in profitability? Higher labor and supply costs, higher drug costs, and lower reimbursement from commercial and government payers. If you’re a small hospital with a tight budget, then you’ve probably entertained the idea of consolidating with a larger system with hopes of controlling costs and growing margins. But the data suggests that both financially and in terms of patient care, consolidation might not be the ideal solution.