Medical Economics November 30, 2022
Todd Shryock

Year-end outlook not looking good as financial struggles continue

As the end of the year approaches, hospitals are still struggling with negative margins as a result of expenses, staff shortages, and fewer patient discharges driving poor performance, according to the latest National Hospital Flash Report from Kaufman Hall.

The year-to-date operating margin index for hospitals was -0.5% through October, dropping 2% from September, and down 13% from October 2021. This marks the tenth straight month of negative margins.

Expenses continue to be a problem, with total expenses increasing slightly in October from already elevated levels in September, outpacing revenue. Total expenses increased 1% from the previous month, while total labor expenses increased 3%.

“Record-high expenses across the economy have not eased up,...

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