The report is based on data from more than 1,600 U.S.-based hospitals and 135,000 physicians. While average hospital margins were up year to date from 2023 in May, they dropped nearly 1% from April to May, according to the report. Regionally, average hospital operating margins ranged from 0.9% decrease in the Midwest and 1.8% increase in the Northeast / Mid-Atlantic region.
Hospital revenues were strong in May, but not pacing with the double-digit increases in April. Inpatient revenue was up 6.7% year over year on average but 1% month over month. Average outpatient revenue jumped 8% year over year and 2.2% month over month in May. Revenue is trending in the right direction; May was the 13th consecutive month of year over year gross operating revenue increases for inpatient, outpatient and overall revenue.
Total expenses increased 5.7% year over year on average and 1.6% month over month in May. The increase was driven by drug and supply expenses, which increased 8.3% and 8.1% year over year, respectively.
Labor expenses grew more slowly, at 4.4% year over year on average and 2.4% month over month.
