The study was based on survey responses from 74 non-teaching California hospitals that had annual revenues of $100 million to $300 million. For the study, researchers analyzed data from 2012 Medicare cost reports and California Office of Statewide Health Planning and Development data.
The study made the following findings:
- Net patient revenue per discharge was an average of $1,504 more at higher-cost hospitals than lower-cost facilities.
- Lower-cost hospitals had an average profit margin of 4.7 percent, compared with a 1.6 percent deficit at higher-cost hospitals.
- Lower-cost hospitals spent an average of 27 percent less on pharmacy services than higher-cost hospitals.
- Higher-cost hospitals spent approximately 25 percent more on employee benefits.
- Higher-cost hospitals spent 10 percent more on supplies than lower-cost facilities.
The results of the study were presented at the Healthcare Financial Management Association’s Annual National Institute in Las Vegas.
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