The New Jersey hospitals posted an average operating margin of 1.7 percent at the end of 2009, up from 0.2 percent at the end of 2008, largely due to reducing costs through layoffs and other measures. A January 2010 survey showed nearly half of the hospitals had eliminated jobs in the past two years, one-third had frozen employee pay and one-quarter had eliminated some services or programs.
But a new report by Moody’s Investor Services forecast a negative outlook for New Jersey nonprofit hospitals. New Jersey hospitals face more than $4 billion in Medicare cuts over the next decade under healthcare reform. Operating margins of New Jersey hospitals traditionally lag 2 to 3 percent behind nationwide hospital margins.
Read the New Jersey Hospital Association release on operating margins.
Read more on operating margins:
–New Jersey Hospitals’ Operating Margins Fall to Lowest Point Since 1999
–Pennsylvania Hospitals See Declining Financial Health
–Fitch Ratings: California Non-Profit Hospitals Remain Strong Despite Economic Downturn
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.
