While operating margins for nonprofit hospitals dropped slightly nationwide from January to February, their financial performance has made great strides year over year, according to the Kaufman Hall National Hospital Flash Report, released March 27.
The average margin was 3.96% for February before the Change Healthcare data breach, which has impacted claims processing. The report authors noted gross revenues are rising faster than net revenue, driven by payer mix changes. Bad debt is also up, the report found.
The authors also highlighted a shift in revenue source.
"Revenue growth is primarily being driven from the outpatient setting. There continues to be a decline in inpatient revenue and increase in outpatient revenue," the report authors wrote.
Here are 24 statistics on nonprofit hospital profitability in February, based on data from 1,300 hospitals.
Overall
Operating Margin
Month over month: -5%
Year over year: 39%
Operating EBITDA Margin
Month over month: -4%
Year over year: 26%
West
Operating Margin
Month over month: -18%
Year over year: 41%
Operating EBITDA Margin
Month over month: -14%
Year over year: 27%
Midwest
Operating Margin
Month over month: 1%
Year over year: 58%
Operating EBITDA Margin
Month over month: -2%
Year over year: 63%
South
Operating Margin
Month over month: -5%
Year over year: 60%
Operating EBITDA Margin
Month over month: -3%
Year over year: 28%
Northeast / Mid-Atlantic
Operating Margin
Month over month: -6%
Year over year: 17%
Operating EBITDA Margin
Month over month: -5%
Year over year: 15%
Great Plains
Operating Margin
Month over month: -7%
Year over year: 17%
Operating EBITDA Margin
Month over month: -6%
Year over year: -1%