Hospitals’ financial performance remains steady, according to the most recent National Hospital Flash Report from the Chicago-based Kaufman Hall consulting and advisory firm. A core measure of hospitals’ revenue, the Kaufman Hall Calendar Year-to-Date Operating Margin Index, was 4.1 percent in July.
A press release posted to the company’s website on Sep. 4 quoted Erik Swanson, senior vice president of data and analytics as stating that “The theme of 2024 has been stability. We’re seeing improvements across the board, especially in outpatient revenue and shorter average length of stay. Notably, the reduction in average length of stay has also led to significant decreases in expenses, further bolstering hospital performance. However, while overall hospital performance has been strong, the financial performance of health systems has been trending lower than hospitals alone.”
The report noted several “key takeaways”:
1. Hospital finances continue to stabilize with strong operating margins. Key indicators including outpatient revenue and average lengths of stay show continued improvement.
2. Decreases in average lengths of stay have also led to declines in expenses.
3. Overall hospital performance has been strong in 2024. In comparison, the performance of health systems has been trending lower than hospital performance.
