Hospital margins inched upward to “razor-thin, near-zero levels” in March, a month-to-month improvement driven by volume gains across inpatient and, to a greater extent, outpatient settings, according to the latest monthly report from Kaufman Hall.
Still, the upward trajectory was held in check by higher expenses across labor and non-labor spending alike, the firm reported. These increases, alongside ongoing capacity and discharge bottlenecks, mean that most hospitals are still vulnerable should a recession or another public health emergency appear, Kaufman Hall wrote in the report.
Kaufman Hall’s index of median year-to-date operating margins was a flat 0% for March, up from February’s -1.5%. The industry’s operating margins improved 8% year over year and are 19% higher on a year-to-date basis compared to the same period in 2022, Fierce Healthcare reports. Read more.
