Hospitals see minor financial improvement in May
After a brutal two months of significant revenue losses, hospitals saw a slight improvement in margins during May, according to the latest Flash Report from Kaufman Hall.
The improvement was in part due to financial help from the CARES Act, which contributed $50 billion to hospitals, as well as an increase in volume after elective surgeries resumed following a temporary pause as COVID-19 cases rose. May’s median hospital operating margin rose to 4% thanks to the funding relief. Without it, hospital margins were expected to be -8%. Compared to April, margins were up 100% in May.
Year over year, hospital margins are still down 13% and 6% below budget, according to the report. In April, year-over-year operating margins were down 282%.
Cases in the U.S. are still on the rise, with nearly 2.35 million cases reported in the nation and more than 121,000 deaths.
“The May results provide a glimmer of hope for our nation’s hospitals, but they also serve as a stark reminder of the long road ahead,” Jim Blake, managing director at Kaufman Hall and author of the report, said in a statement.
Hospital volumes improved in May, with adjusted discharges up 30% compared to April, but still down 27% compared to the same period last year and 26% below budget. Operating room minutes rose 92% from April to May, another result from non-emergency procedures resuming.
Actual revenues decreased further on a year-over-year basis, but adjust revenues showed slight year-over-year gains thanks to lower volumes. Compared to April, total gross revenue was up 29% from April, but down 14% compared to las tear.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."