Hospitals nationwide reported a 1.6% median operating margin in September, the seventh straight positive monthly figure, according to data from Syntellis Performance Solutions.
After negative margins in the first two months of 2023, the median operating margin has risen steadily, with just one dip in July.
Despite the general improvement, however, overall financial performance remains unstable, according to the report. Total hospital expenses, for example, though improving on the previous month, continued to rise in September compared to the same month in 2022, with labor expenses increasing 2.4% year-on-year.
"Hospitals remain on a slow path to recovery," said Steve Wasson, chief data and intelligence officer of Strata Decision Technology, which owns Syntellis. "Hospitals have a long road ahead before they reach more sustainable financial performance, and high costs will remain a significant concern for the foreseeable future."