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.