Just a few months remain in what is shaping up to be one of the worst financial years for hospitals, Kaufman Hall notes in its latest report. Hospitals faced decreasing revenues and treated sicker patients. Hospitals did, however, see slightly lower expenses, but the drop was not enough to offset revenue decrease.
The median Kaufman Hall Year-To-Date Operating Margin Index reflecting actual margins was -0.1% in September.
The profitability disconnect between health systems and the nation’s largest payers will be a key bone of contention in contract negotiations for 2023. Several high-profile contract disputes between insurers and healthcare systems have led to contract terminations this year. Read more.
