Hospitals’ Financial Performance Fails to Reach Pre-Pandemic Levels

Hospitals Financial Performance Fails to Reach Pre-Pandemic Levels

What You Should Know: 

Hospital finances showed signs of stabilizing in May, amid slightly improving operating margins, declining expenses and notable increases in outpatient visits, according to the latest National Hospital Flash Report from Kaufman Hall.

The National Hospital Flash Report draws on data from more than 1,300 hospitals from Syntellis Performance Solutions.

Analysis Shows Slow Increases in Margins

Key findings of the report include: 

  • The median year-to-date (YTD) operating margin index for hospitals was 0.3% in May, up slightly compared to 0.1% in April and March. Although operating margins are slowly regaining positive territory, they are well below levels during the latter half of 2021 and prior to the pandemic.
  • Adjusted discharges per calendar day, emergency department visits per calendar day and operating room minutes per calendar day each increased between April and May 2023 and between May 2022 to May 2023 respectively.
  • Net operating revenue per calendar day was 9% higher in May 2023 compared to May 2022, while outpatient revenue per calendar day rose 14% over the same time frame.