Is Healthcare Recession-Proof?
While healthcare is generally considered to be more resilient than many other industries during economic downturns, it is not completely recession-proof. During times of economic uncertainty, hospitals and health systems struggle to maintain cash flow. At the end of 2022, 50% of US hospitals had a negative operating margin, and 30% of rural hospitals faced the risk of closing in the near or immediate future. The added strain of rising costs of labor, supplies, and services also have a negative impact on the healthcare industry.