Hospital margins improving after rough start to 2022

May 6, 2022

As stated in a release by Kaufman Hall, U.S. hospitals and health systems fared better in March following a difficult start to the year due to January’s devastating Omicron surge.

While repercussions of the surge persist, hospitals saw early signs of relief as outpatient volumes and revenues returned and expenses eased with fewer high acuity patients.

Even so, the latest performance results suggest a long road ahead with actual hospital operating margins in the red for a third consecutive month as organizations struggle with inflation, national labor shortages, and other operating pressures. The median Kaufman Hall year-to-date Operating Margin Index was -2.43% in March.

Performance results from February to March include:

  • Median change in Operating Margin rose 32.7%
  • Adjusted Discharges increased 18%
  • Gross Operating Revenue was up 14%
  • Total Expense per Adjusted Discharge decreased 9%

For more data and insights, read the April 2022 issue of Kaufman Hall’s National Hospital Flash Report.

Kaufman Hall release

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