Hospitals have been profitable for most of 2023
While hospitals were losing money in early 2023, that trend has apparently shifted nationwide, with most now operating in the green.
Market analyst firm Syntellis Performance Solutions has released a report showing hospitals in the U.S. have been profitable for the last seven months, with September 2023 showing a median operating margin of 1.6%. September marked the second consecutive month in which that number rose, but margins did slide downward from 2% in June to 1.1% in July, according to the report.
Syntellis chief data and intelligence officer Steve Wasson says in the report that the uneven trend shows “hospitals remain on a slow path to recovery.”
Details from the data in the report signal the healthcare market remains in a state of uncertainty, with expenses for hospitals still rising 3% year-over-year. Additionally, physician practices, often necessary for hospital referrals, are facing similar struggles. According to the report, direct expense per physician jumped 11.6% since Q3 last year.
“Hospitals have a long road ahead before they reach more sustainable financial performance, and high costs will remain a significant concern for the foreseeable future,” Wasson says.
Despite the concerns, hospital revenues have risen year-over-year, up an average of 6%. This is despite a decrease in patient volumes, with “adjusted patient days” down 0.8% since September 2022, dropping 5.1% in just one month from August to September 2023.
Operating room minutes billed were also down 2.9% year-over-year, dropping 9.8% between August and September 20023.
Syntellis says hospital patient volumes overall will likely “remain volatile throughout flu season.”
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.