Report: US hospitals still seeing ‘cumulatively negative’ margins

Editor's Note

A report compiled by healthcare consulting company Kaufman Hall, titled “National Hospital Flash Report: June 2022” and published on June 28, shows that US hospitals and health systems continue to “perform below pre-pandemic levels,” the American Hospital Association (AHA) June 28 reports.

The report analysis is based on data from more than 900 hospitals across the country between April and May 2022. According to the authors, “while some metrics have normalized” and select areas like the emergency department are getting more volume and revenue, these hospitals “are still seeing higher labor costs and fewer hours worked, as inflation and turnover worsen long-standing labor shortages.”

“The median Kaufman Hall Operating Margin Index for May was -0.33%, far from sustainable levels,” the report noted. “Nearly halfway through 2022, margins are cumulatively negative…and there is an uncertain outlook for the rest of the year.”