Hospitals saw their margens fall last month as the cost of labor continues to rise, Kaufman Hall observes in a new report.
Hospitals and health systems nationwide were hit with another month of margin declines in October as rising labor expenses continue to weigh down overall hospital performance, even as pressures from high levels of high acuity cases showed signs of waning. Actual hospital operating margins held relatively steady for a fourth consecutive month as a result. The median Kaufman Hall Operating Margin Index was 3.2% in October, not including federal CARES Act funding. With the aid, it was 4.1%.
Not including CARES, the median change in Operating Margin was down 12.1% from September to October, marking a second consecutive month of monthover-month margin declines. Looking at year-over-year (YOY) results, the median change in Operating Margin dropped 31.5% compared to pre-pandemic levels in October 2019. Hospitals in regions hard hit by the recent COVID-19 Delta surge were most affected, with the West, South, and Midwest all experiencing YOY margin declines for the month. Read more.
