Kaufman Hall report: Hospitals report negative margins, November 2022

Editor's Note

Healthcare systems across the nation were still operating with negative margins in November of 2022, according to Kaufman Hall’s December National Hospital Flash Report, noted the American Hospital Association on January 4.

The report looked at data from over 900 hospitals and noted that median operating margins for 2022 were down 44% compared to 2021, which can be attributed to high labor and other costs outweighing revenue.  

While hospital margins remained negative in 2022, the report noted that margins improved in November. The data showed lower expenses and labor costs for the month, which is likely the source for improved profit margins. The lower labor costs could potentially be attributed to less reliance on contract staff.

Hospital outpatient revenue was up for the year of 2022, and the report noted that hospitals could rely more on their outpatient services to help improve their margins in the new year.

Read the Kaufman Hall report.