Medical Economics May 2, 2024
Operating margins, volume, and revenue have all declined
The latest data from Kaufman Hall has painted a concerning picture for hospital financials across the United States, indicating a downturn despite a relatively robust start to the year. According to the National Hospital Flash Report, hospital operating margins, volume, and revenue have all experienced declines.
In March, the Kaufman Hall Calendar Year to Date Operating Margin Index, a key measure of hospital profitability, dropped to 3.9%, marking a 0.2 percentage point decrease from February’s figure of 4.1%. This index represents the national median for hospital profitability, factoring in operating revenue less operating expense, including allocations from corporate, physician, and other entities.
Experts from Kaufman Hall have highlighted challenges ahead for hospitals...
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