While Oregon hospitals witnessed an increase in median net patient revenue in 2016, their annual median operating margin fell amid rising operating expenses and a slowdown in inpatient and emergency department use, according to Oregon Health Authority's quarterly report.
Median net patient revenue for Oregon hospitals grew by 5 percent to $94.8 million in 2016 compared to the year prior. However, total annual inpatient discharges fell by roughly 1 percent in 2016 compared to 2015.
In addition, Oregon hospitals saw annual median operating expenses increase 3.5 percent year over year to $96.1 million. The increased expenses were paired with falling operating margins. The annual median operating margin for Oregon hospitals fell from 4.3 percent in 2015 to 3.5 percent in 2016.
"This slowing down of utilization while operating expenses continued to rise is likely a key factor driving year-end drops in operating margins," the report states.