The negative margin for 2023 compounded a -8% operating margin in the same period last year.
While revenues grew, services were cut and overall contract labor was down in the first half of 2023, expenses increased 10% year over year. Non-operating income helped ease the losses further with an overall negative margin of -1% reported.
“Investment income is not reliable and it is critical that operating margins are positive for long-term sustainability of hospitals in our state,” warned Eric Lewis, WSHA CFO. “85% of the organizations responding to our survey had a negative margin. This level of losses is unprecedented.”
Key data:
Total operating revenues:
$16.1 billion (2023)
$14.8 billion (2022)
Total expenses:
$16.9 billion (2023)
$15.9 billion (2022)
Net operating income (loss):
($746.7 million) (2023)
($1.2 billion) (2022)
Operating margin:
-5% (2023)
-8% (2022)
*figures have been rounded
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