33 Statistics on Nonprofit Hospital Operating Margin by Credit Rating

Healthcare CFOs and other top finance leaders view operating margin as one of the most important metrics to gauge the sustainability of their organizations.

In 2012, the median operating margin at most nonprofit hospitals and health systems varied, depending on credit rating and other factors, but generally it fell between 1 and 4 percent.

Here are 33 statistics on nonprofit hospital and health system operating margins, separated by credit rating categories from the three major rating agencies. Note: All data are medians and reflect audited 2012 financial statements.

Fitch Ratings

Hospital credit rating

Median operating margin (2012)

AA

6.5 percent

AA-

4.1 percent

A+

4.5 percent

A

3.2 percent

A-

2.6 percent

BBB+

1.8 percent

BBB

0.9 percent

BBB-

2.8 percent



Moody's Investors Service

Hospital credit rating

Median operating margin (2012)

Aa2

3.9 percent

Aa3

3.5 percent

A1

3.6 percent

A2

3.2 percent

A3

1.9 percent

Baa1

1.2 percent

Baa2

1.2 percent

Baa3

1.2 percent

Below Baa

-1.8 percent



Standard & Poor's Ratings Services (health systems)

Hospital credit rating

Median operating margin (2012)

AA+/AA

3.9 percent

AA-

4.3 percent

A+

2.4 percent

A

2.5 percent

A-

1.5 percent

BBB+

1.8 percent

BBB/BBB-

1.2 percent



Standard & Poor's Ratings Services (standalone hospitals)

Hospital credit rating

Median operating margin (2012)

AA

5.2 percent

AA-

4.4 percent

A+

5 percent

A

2.9 percent

A-

2.6 percent

BBB+

2.5 percent

BBB

1.3 percent

BBB-

0.6 percent

Speculative grade

0.4 percent



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