Industry Trends

The median year-to-date operating margin index for hospitals was -1% in January 2023, compared to -3.7% in January 2022. The 2023 year-to-date operating margin index was still lower than that of 2021 at -0.1%, and 2020 at 3.1%.

This could reflect increases in actual acuity and the intensity of services required, or changes in billing practices, or both. 

Madera Community Hospital posted a $11.5 million loss in fiscal year 2021-22 — its last full year of operations — as the pandemic destroyed its bottom line.

VillageMD leads the list of venture-funded MA startups with nearly $6.6 billion raised.

Recently, home care providers, digital health companies and other stakeholders have been joining together to close the gaps in care.

In total, 2022 saw a little more than 100 transactions, which is in line with pre-pandemic levels.

The $150 million patient pavilion project at the system's flagship hospital in Lebanon, NH remains unaffected by the plans to curtail other capital spending. The 64-bed pavilion is due to open in May.

Historically viewed as recession-proof, 2023 is expected to be a challenging year for the healthcare industry as macroeconomic factors – inflation, high labor expenses, volatile markets, supply chain snarls and other issues – exert their influence in ways not previously seen.

A commitment to invest in ASCs, urgent care centers and various home settings, as well as related administrative service organizations in health care, is likely to drive a trend for sustained transaction volume in 2023. 

The year is off to an unfriendly start for hospital finances, with a median margin of -1 percent for January, worsening from the margin recorded a month prior, according to Kaufman Hall.