Hospital margins at 1.4% in August as outpatient volumes increase

Hospital median operating margins rose to 1.4 percent in August, the sixth straight month of positive results, Syntellis said in its latest monthly benchmark report.

The latest data comes after a slip in July by almost 1 percentage point.

"While margins remain narrow, the August figure suggests hospital finances are stabilizing with strong revenues contributing to six consecutive months of positive operating margins after more than a year in the red," the report said. Margins are up 1.9 percent from August 2022.

An ongoing shift toward outpatient services contributed to the margin improvement, with revenue in that sector rising a "sizable" 10 percent year over year and 11.6 percent month over month. Inpatient revenue also rose, up 4 percent year over year and 3.9 percent month over month.

Expenses continued to climb, however, even as per patient expenses eased. Total labor expenses increased 3 percent year over year, while supply and drug expenses rose 6 percent.



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