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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