Operating margins in hospitals and health systems were consistently in the red for 15 months before March saw a creep back into the black. Now, median operating margins have actually increased, according to a Syntellis report.
The median operating margin in May rose from 0.4 percent to 0.7 percent, the report said. The data reflects similar conclusions from Kaufman Hall's "National Flash Hospital Report."
One of the main drivers behind the improved margins was revenue from outpatient services. Compared with the same month in 2022, such revenues jumped 14.3 percent, the biggest year-on-year increase since January 2022.
There was also a 9.3 percent hike from April 2023, the report showed.
While total expenses remained on the rise, per patient expenses largely decreased, Syntellis added, "signaling that hospitals are better managing expenses relative to rising patient volumes."