20 financial benchmarks for hospital executives

Here are 20 benchmarks related to one of the most important day-to-day areas hospital executives oversee — finance.

Source: Moody's Investors Service, "U.S. Not-for-Profit Hospital 2015 Medians" report, September 2016.

The medians are based on an analysis of audited 2015 financial statements for 340 freestanding hospitals, single-state health systems and multi-state health systems, representing 81 percent of all Moody's rated healthcare entities. Children's hospitals, hospitals for which five years of data are not available and certain specialty hospitals were not eligible for inclusion in the medians.

1. Maintained bed occupancy: 64.3 percent

2. Operating margin: 3.4 percent

3. Excess margin: 6.1 percent

4. Operating cash flow margin: 10.3 percent

5. Return on assets: 4.8 percent

6. Three-year operating revenue CAGR: 5.8 percent

7. Three-year operating expense CAGR: 5.5 percent

8. Annual operating revenue growth rate: 7.5 percent

9. Annual operating expense growth rate: 6.6 percent

10. Total debt-to-capitalization: 33.7 percent

11. Current ratio: 2.0x

12. Cushion ratio: 20.6x

13. Annual debt service coverage: 5.2x

14. Maximum annual debt service coverage: 4.8x

15. Debt-to-cash flow: 2.7x

16. Capital spending ratio: 1.1x

17. Cash on hand: 211.8 days

18. Accounts receivable: 48.4 days

19. Average payment period: 64.3 days

20. Average age of plant: 11 years

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