We are in an unprecedented era of financial distress for hospitals across the United States. As business entities, hospitals are among the most complex and challenging to manage, and they face a myriad of external headwinds (e.g., labor challenges, declining reimbursement, physician shortages, aging facilities, rapid changes in technology and innovation, post-COVID effects of consumer behavior and usage). Some hospital closures are unavoidable—the result of market dynamics or health system reconfiguration. Others can be averted if leadership can avoid the following traps that are commonly seen with failed hospitals.
