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Submission: On May 22 via api from US — Scanned from DE
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FINANCIAL MANAGEMENT
HOSPITAL MARGINS 'WELL BELOW SUSTAINABLE LEVELS': KAUFMAN HALL
Alia Paavola - Monday, March 28th, 2022
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Hospitals across the U.S. saw their operating margins remain negative for the
second consecutive month in February as they continued to feel the repercussions
of the winter omicron surge, according to Kaufman Hall's "National Hospital
Flash Report: March 2022" posted March 28.
The median operating margin in February was -3.45 percent, up from -4.52 percent
in January, but "still well below sustainable levels," Kaufman Hall said.
Kaufman Hall said the improvement in hospital margin was driven by
disproportionate increases among several hospitals that saw margin gains, but
most hospitals reported margin declines in February. Specifically, the median
operating margin was down 11.8 percent month over month.
"The second month of 2022 brought further challenges for the nation's hospitals
and health systems," Kaufman Hall said. "Overall, the year is off to a difficult
start."
Kaufman Hall noted that patient days were down 13.3 percent month over month,
and fewer severely ill COVID-19 patients also contributed to shorter hospital
stays as the average length of stay dropped 5.3 percent month over month.
Hospitals' gross operating revenue also decreased 7.4 percent compared to
January 2022, with outpatient revenue falling 5 percent and inpatient revenue
declining 19.3 percent.
Kaufman Hall noted that hospitals saw some improvement month over month in terms
of expenses. Total expenses per adjusted discharge fell 4.5 percent compared to
January, labor expense per adjusted discharge fell 6.1 percent and non-labor
expenses per adjusted discharge was down 3.6 percent. However, Kaufman Hall
noted that year over year, expenses are still up significantly, with total
adjusted expense per adjusted discharge rising 10.4 percent compared to February
2021.
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