Hospitals' median operating margin was 2% through November, up from 1.5% in October, according to Kaufman Hall's "National Hospital Flash Report," released Jan. 9.
Kaufman Hall said hospital performance in November signals "continued stabilization and growth." The firm's report is based on data from more than 1,300 hospitals.
"Operating margins improved compared to the previous month and last year, and other data points indicate movement towards recovery, though the gap between high and low performers remains quite wide," Kaufman Hall said in the report.
Inpatient and outpatient revenue increased by 5% and 9%, respectively, year over year, according to a Jan. 9 Kaufman Hall news release shared with Becker's. Total expense per adjusted discharge declined, while revenue per adjusted discharge increased, which the firm said is "a sign of financial recovery."
"This reflects the efforts organizations have taken to deliver care in the most effective settings and reduce reliance on contract labor where possible," the report said.
"As performance indicators stabilize, hospitals should take advantage of the relative stability and re-embrace strategic growth if they hope to see continued success in 2024," Erik Swanson, Kaufman Hall's senior vice president of data and analytics, said in the release. "Growth strategies may vary from hospital to hospital, but all leaders should ensure that they are supporting goals beyond just profitability and scale, including business model transformation and diversification."