The uptick in average operating margin was attributed to delayed capital projects, reported layoffs, service reductions, hiring and wage freezes and the attrition of other budgeted positions, according to the release.
Sean Hopkins, senior vice president of health economics for NJHA, said the slight improvement in operating margins is most likely a short-lived improvement as New Jersey hospitals will face a combined $4.5 billion in Medicare reimbursement cuts over the next decade and “uncertainty under healthcare reform and debt reduction.”
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