Infographic: How the Recession Hurt Hospitals' Inpatient Margins

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Hospitals weren't immune from the recession that hit in late 2008 and endured throughout 2011. A new infographic from Objective Health illustrates how much declines in admissions for commercially insured patients cost hospitals throughout the recession.

Commercially insured scheduled admissions are the largest contributor to inpatient margins for the average hospital. The infographic shows that, in 2008, 34 percent of an average hospital's inpatient margin came from volumes in this segment.

Those stable admissions declined during the recession from 2009 through 2011, however, resulting in a 2.8 percent decrease in utilization of inpatient services and 1.7 percent decrease in commercial coverage, stemming from underemployment and unemployment.

Thus, the decrease in scheduled inpatient admissions for commercially insured patients resulted in a $3.7 million loss for the average 300-bed hospital in the recession, or from 2009 through 2011.  

The infographic can be viewed here [pdf].

More Articles on Hospitals and Finance:

Increased Medicare Spending Tied to State Unemployment Rates, Study Says
Managed Care M&A Activity Slow to Recover From Great Recession
Number of Uninsured Americans Drops by 1.4M


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