33 Statistics on Nonprofit Hospital Operating Margin by Credit Rating - Becker's Hospital Review

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