The cumulative profit margin across all St. Louis-based hospitals in 2010 hit 7.6 percent — the second-highest figure in the past 15 years, according to a report from the St. Louis Area Business Health Coalition (pdf).
That figure is above the national mark, as U.S. hospitals recorded a 7.2 percent profit margin in 2010 — the highest in 30 years.
Analysts with the coalition said the profit margin figures are actually a conservative estimate based on the data studied, since system-level investment income was not reported in several of the individual hospital reports.
Although St. Louis-based hospitals are providing fewer services, the higher profit margins could indicate hospitals are either charging more and/or are becoming more resourceful in their cost containment strategies.
"Sustained revenues in the face of declining utilization in 2010 suggest higher prices," according to the report. "Increased profits despite falling service use could also indicate…improved efficiency."
That figure is above the national mark, as U.S. hospitals recorded a 7.2 percent profit margin in 2010 — the highest in 30 years.
Analysts with the coalition said the profit margin figures are actually a conservative estimate based on the data studied, since system-level investment income was not reported in several of the individual hospital reports.
Although St. Louis-based hospitals are providing fewer services, the higher profit margins could indicate hospitals are either charging more and/or are becoming more resourceful in their cost containment strategies.
"Sustained revenues in the face of declining utilization in 2010 suggest higher prices," according to the report. "Increased profits despite falling service use could also indicate…improved efficiency."
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