Increased patient volumes, lower bad debt and reduced expenses, led to strong operating profitability for hospitals in October, according to a National Hospital Flash Report from consulting firm Kaufman Hall.
Hospitals' median operating earnings before interest, taxes, depreciation and amortization margin was up 20 percent month over month in October and 6 percent year over year.
Median operating margins for hospitals rose 34.8 percent month over month, and rose 10.4 percent year over year.
In addition, hospitals saw modest revenue gains in October. Net patient service revenue per patient discharge rose 1.5 percent year over year and 1.2 percent year over year.
The modest revenue increase was coupled with decreases in bad debt and charity care. The percent of uncompensated care as a percent of gross revenue in October decreased 4.8 percent year over year.
The strong operating performance for the hospital sector was also attributed to an increase in patient volume, which the firm said is likely a result of seasonal illnesses.
Access the full report here.
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