21 financial benchmarks for hospital executives

Here are 21 benchmarks related to one of the most important day-to-day areas hospital executives oversee — finance.

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Hospital margins by credit rating group
Source: Standard & Poor’s Ratings Services, “2014 Median Ratios for Nonprofit Healthcare Systems” report, September 2015.

“AA” rating
1. Operating margin: 4.0 percent
2. Operating EBIDA margin: 10.6 percent
3. Excess margin: 7.4 percent
4. EBIDA margin: 13.8 percent

“A” rating
5. Operating margin: 2.7 percent
6. Operating EBIDA margin: 9.4 percent
7. Excess margin: 4.8 percent
8. EBIDA margin: 11.4 percent

“BBB” rating
9. Operating margin: 0.6 percent
10. Operating EBIDA margin: 6.2 percent
11. Excess margin: 2.7 percent
12. EBIDA margin: 8.5 percent

Days cash on hand and days in accounts receivable by credit rating group
Source: Standard & Poor’s Ratings Services, “2014 Median Ratios for Nonprofit Healthcare Systems” report, September 2015.

“AA” rating
13. Days in accounts receivable: 49.3 days
14. Days cash on hand: 292.7 days

“A” rating
15. Days in accounts receivable: 47.7 days
16. Days cash on hand 181.7 days

“BBB” rating
17. Days in accounts receivable: 49 days
18. Days cash on hand: 137.7 days

Average age of plant
Source: Standard & Poor’s Ratings Services, “2014 Median Ratios for Nonprofit Healthcare Systems” report, September 2015.

“AA” rating
19. Average age of plant: 9.7 years

“A” rating
20. Average age of plant 10.9 years

“BBB” rating
21. Average age of plant: 10.9 years

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