Hospital profits declined in August, the second month this year, according to a report from financial advisory firm Kaufman Hall.
The firm found hospitals' EBITDA margin declined 139 basis points, and their operating margins declined 122.5 basis points year over year.
It's the second month in 2019 that hospitals have posted profit declines. Hospitals also posted significant year-over-year decreases in June.
"The declines were driven primarily by softening volumes. As was the case in June, hospitals continue to struggle to effectively adjust expenses when volumes flatten in order to maintain sufficient profitability," according to Kaufman Hall.
Hospitals also saw their bad debt and charity care increase more than 5 percent in August compared to the same month a year prior, which led to expenses rising faster than revenues, the firm stated.
Read the full report here.
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