That figure is above the national mark, as U.S. hospitals recorded a 7.2 percent profit margin in 2010 — the highest in 30 years.
Analysts with the coalition said the profit margin figures are actually a conservative estimate based on the data studied, since system-level investment income was not reported in several of the individual hospital reports.
Although St. Louis-based hospitals are providing fewer services, the higher profit margins could indicate hospitals are either charging more and/or are becoming more resourceful in their cost containment strategies.
“Sustained revenues in the face of declining utilization in 2010 suggest higher prices,” according to the report. “Increased profits despite falling service use could also indicate…improved efficiency.”
More Articles on Hospital Profit Margins:
Hospital Labs: Money Pits or Profit Centers?
Henry Ford Health System Net Income Drops 64%
Factors Driving Hospital Valuation: Q&A with Colin McDermott of VMG Health
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.
