Hospital operating margins down 282% in April

Hospitals saw record-poor margin performance in April due to significant volume and revenue declines, according to a report from Kaufman Hall.

Kaufman Hall said in its "National Hospital Flash Report" for May that the steep financial declines have "permanently changed" the healthcare delivery environment and made COVID-19 recovery incredibly difficult.

Year over year, operating margins for hospitals fell 282 percent in April, the first full month hospitals dealt with the effects of COVID-19. Month over month, April's operating margins were down 120 percent from March. The Kaufman Hall Hospital Operating Margin index found the median hospital operating margin fell to -29 percent in April.

Kaufman Hall predicts the steep volume and revenue changes hospitals have seen amid the COVID-19 pandemic will lead to major changes in care delivery, including telehealth-infused care models, new cost structures and competitive dynamics. 

Read the full report here.

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