Hospitals report modest growth as pandemic recovery continues

Editor's Note: 

Hospitals and health systems are reporting improved operating margins and increases in revenue as they continue their long recovery from the effects of the COVID-19 pandemic, according to a January 10 report from Chief Healthcare Executive.

Citing the National Hospital Flash Report from Kaufman Hall, the article notes that the median calendar year-to-date operating margin index for hospitals was 2% in November 2023. Compared to November 2022 figures, inpatient revenue rose 5% and outpatient revenue rose 9%. Other highlights of the data include:

• Operating room minutes rose 2% from October to November and 4% from November 2022.
• Labor expenses rose 1% from October to November and 2% from November 2022.
• Non-labor costs rose 3% from October to November and 5% from November 2022.
• Many organizations continue to see volumes lag behind pre-pandemic levels, and some analystis project a tough road for hospitals and health systems in 2024.

Erik Swanson, senior vice president of data and analytics with Kaufman Hall, recommends hospitals go beyond merely cutting costs to “re-embrace strategic growth” amid this period of relative stability.