The average operating margin for hospitals in January was 5.1%, down 11% from December, according to the Kaufman Hall National Hospital Flash Report.
"While hospital financials continue to show stabilization across all volume-adjusted metrics, a deeper dive into the data shows that not all organizations are experiencing the same stabilization," said Erik Swanson, senior vice president of data and analytics at Kaufman Hall. "High-performing hospitals are doing better and better while lower financial performers have stagnated or seen their margins worsen."
One of the factors widening the gap between the high and low performers is technology. The high performing systems have well-defined advanced analytics and artificial intelligence strategy to support business objectives, according to the report.
Below is a breakdown of the average margin growth or decline by region and hospital size.
Total operating margin
Month over month: -11%
Year over year: 25%
Year to date 2024 vs. 2021: 25%
Operating EBITDA Margin
Month over month: -11%
Year over year: 18%
Year to date 2024 vs. 2021: 10%
West - operating margin
Month over month: 5%
Year over year: 43%
Year to date 2024 vs. 2021:37%
Midwest - operating margin
Month over month: -17%
Year over year: 18%
Year to date 2024 vs. 2021: 6%
South - operating margin
Month over month: -9%
Year over year: 30%
Year to date 2024 vs. 2021: 50%
Northeast / Mid-Atlantic
Month over month: -19%
Year over year: 13%
Year to date 2024 vs. 2021: 19%
Great Plains
Month over month: -12%
Year over year: 1%
Year to date 2024 vs. 2021: 7%
100-199 Beds
Month over month: -11.2%
Year over year: 27.1%
Year to date 2024 vs. 2021: 37.8%
200-299 Beds
Month over month: -15%
Year over year: 28.4%
Year to date 2024 vs. 2021: 1.3%
300-499 Beds
Month over month: -5/1%
Year over year: 27.6%
Year to date 2024 vs. 2021: -8.5%
500+ Beds
Month over month: -10.5%
Year over year: 26.9%
Year to date 2024 vs. 2021: 23.7%