The average profitability change from 2022 to 2023 varied widely based on the region of the country and size of the hospital. Below is a breakdown of operating margin and operating EBITDA margin for each region across the U.S.:
West
Operating margin: 28%
Operating EBITDA margin: 13%
Midwest
Operating margin: -2%
Operating EBITDA margin: -31%
South
Operating margin: 19%
Operating EBITDA margin: 15%
Northeast / Mid-Atlantic
Operating margin: 24%
Operating EBITDA margin: 5%
Great Plains
Operating margin: 20%
Operating EBITDA margin: 10%
There were big swings in the month over month operating margin growth or decline as well. For example, in the Midwest, average operating margin grew 26% from November to December while over the same time period average operating margin for hospitals in the Great Plains region dropped 10%.
The size of the hospital also affected average operating margin growth or decline. Smaller hospitals with 25 or fewer beds reported average operating margins increased 17.3% from 2022 to 2023 while hospitals with 200-299 beds reported just a 3.9% average operating margin growth.
Hospitals with more than 500 beds had the greatest operating margin leap at 80.5% year over year.
