85% of Washington hospitals report negative margins

While losses may have slowed slightly, hospitals in the state of Washington have reported an overall operating margin of -4.6% for the first half of 2023, an "unsustainable" level, according to the Washington State Hospital Association.

The negative margin for 2023 compounded a -8% operating margin in the same period last year.

While revenues grew, services were cut and overall contract labor was down in the first half of 2023, expenses increased 10% year over year. Non-operating income helped ease the losses further with an overall negative margin of -1% reported.

"Investment income is not reliable and it is critical that operating margins are positive for long-term sustainability of hospitals in our state," warned Eric Lewis, WSHA CFO. "85% of the organizations responding to our survey had a negative margin. This level of losses is unprecedented."

Key data:

Total operating revenues:

$16.1 billion (2023)

$14.8 billion (2022)

Total expenses:

$16.9 billion (2023)

$15.9 billion (2022)

Net operating income (loss):

($746.7 million) (2023)

($1.2 billion) (2022)

Operating margin:

-5% (2023)

-8% (2022)

*figures have been rounded

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