2022 is shaping up to be a difficult year for hospitals. Hospital operating margins remained in the red for a fourth consecutive month in April as organizations struggle to rebound from the Omicron surge. Although volumes improved and costs abated slightly in March, this changed in April, according to a new Kaufman Hall report released today.
COVID-19 cases and hospitalizations started to climb back up throughout the month, and patient volumes continued to take a hit. More patients stayed home in April, and sicker patients — who may have previously postponed care — flocked to the hospital and stayed longer, keeping costs high. The continued labor shortage also factored into elevated expenses.
The median Kaufman Hall Operating Margin Index for April was -3.09%, and the median change in Operating Margin was down 38.1% from last month, still very far from sustainable levels. Read more.
