Median health system margins steady at 2.3%, expenses rise

Average health system operating margins held steady in June while hospital margins dropped slightly, according to Strata’s Monthly Healthcare Industry Financial Benchmarks, published July 25.

Advertisement

The survey includes data from more than 1,600 hospitals and 135,000 physician groups in the U.S. The median year-to-date health system operating margins for June were 2.3% for the second consecutive month while the national averages dropped slightly for hospitals to 4.9% month over month.

Hospitals are seeing elevated expenses and inpatient revenue compared to 2023, but declines across the board compared to May:

Month over month

  • Total expenses: 2.8% drop
  • Labor expenses: 3% drop
  • Non-labor expenses: -2.7% drop

Year over year

  • Total expenses: 4.8% increase
  • Labor expenses: 5.2% increase
  • Non-labor expenses: 3.3% increase

Average inpatient revenue also dropped 5.4% month over month but was up 4.7% year over year. Outpatient revenue also declined 7.6% month over month.

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

Reconsider What’s Possible: Enterprise RCM and the Pro-Fee Practice

Tuesday, July 28
11:00 AM - 12:00 PM CDT

Presenters: Garett Kreitz, Med-MetrixJohn Stefanowicz, Med-MetrixPaul Summers, Nevada Heart & Vascular

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.