December 1, 2022

Hospitals’ margins remain negative in November, 10th consecutive month

By: Bridget Brown
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Editor's Note

Hospitals and healthcare systems across the nation experienced their 10th consecutive month of negative profit margins, according to data Kaufman Hall released in a report on November 30, the American Hospital Association November 30 reports.

The report notes that the pressures of increased expenses is a key driver of poor performance each month. Hospitals have had to turn to more expensive, external labor due to shortages while also dealing with increasing material costs caused by inflation.

As costs continue to rise, data from over 900 hospitals show that the median operating margins were down 43% this month when compared to last year. “October represented another month of negative operating margins for hospitals, with a slight downturn from September,” the report noted, and that the combination of poor performances each month could be a significant predictor of future financial challenges.

Read the Kaufman Hall Report.

 

American Hospital Association. Advancing Health in America

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