12 Statistics on Hospital Profit and Revenue in 2012

Despite pressures from Medicare, Medicaid and commercial payers, hospitals and health systems accumulated massive profits two years ago as the country pulled itself further from the economic recession.

In 2012, the 5,000 nonfederal, short-term, general community hospitals in the United States posted a cumulative profit of $64.4 billion — a 21 percent increase from 2011. That translates into an average net margin of 7.8 percent.

The hospital data, which come from the American Hospital Association's 2014 edition of AHA Hospital Statistics, showed one major factor led to the rise in profitability: expense management. Hospital expenses increased only 7.8 percent from 2011 to 2012, whereas net revenue increased more than 8.7 percent.

Outpatient services also continue to be a driver for hospital growth. From 2011 to 2012, hospitals recorded an 11 percent increase in gross outpatient revenue, compared with only a 9.2 percent increase in gross outpatient revenue from 2010 to 2011. Inpatient revenue soared 6.3 percent from 2011 to 2012 compared with 4.2 percent in the year prior.

Despite the positive 2012 results, the big three credit rating agencies predict a gloomy 2014. Moody's Investors Service said in November that this year will tough for hospitals due to weak revenue growth, heavy health IT investments, changing reimbursement models and other "unique challenges" like the health insurance exchanges.

Here are 12 statistics on general hospital finance in 2012.

Main financials
•    Total net revenue: $821.3 billion
•    Total expenses: $756.9 billion
•    Cumulative profit: $64.4 billion
•    Average revenue per hospital: $164.3 million
•    Average profit per hospital: $12.9 million
•    Average profit per inpatient bed: $80,465

Gross revenue
•    Total gross revenue: $2.43 trillion
•    Total gross inpatient revenue: $1.36 trillion
•    Total gross outpatient revenue: $1.08 trillion
•    Net patient revenue: $762.2 billion
•    Increase in gross inpatient revenue (2011 to 2012): 6.3 percent
•    Increase in gross outpatient revenue (2011 to 2012): 11 percent

More Articles on Hospital Finance:
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