While operating performance has shown improvement signs, growth remains uneven between higher- and lower-performing hospitals, according to Kaufman Hall's June "National Hospital Flash" report.
The report, released Aug. 5, looks at recurring monthly basis data from more than 1,300 hospitals. The report's data sample also represented all U.S. hospitals from bed size and geographical standpoints.
"There is a growing divide between higher- and lower-performing hospitals, even as overall market conditions continue to stabilize," Erik Swanson, senior vice president and data and analytics group leader at Kaufman Hall, said in an Aug. 5 news release. "Smaller hospitals continue to face challenges related to size and access to capital."
Here are five key findings from the report:
1. Hospitals' calendar year to date operating margin index hit 4.1% in June. While June operating margins saw median month-over-month growth, there was a decline in median change, pointing to a stronger divide between the hospitals that are higher performing versus lower performing hospitals.
2. The monthly operating margin index for hospitals was 3.9% in June, up from 3.2% in May.
3. There was a performance bolster for hospitals due to payment results from 340B settlements.
4. All hospital regions except the Great Plains saw improvements compared to the previous year. Hospitals in the Great Plains are often smaller and can face size- and capital access-related challenges.
5. "While operating performance has recently shown signs of improvement, real estate should remain an important consideration for many health systems to bolster their balance sheet and meet current / future capital needs and growth strategies," the report said.