Recent data have shown a median improvement in 2023 operating margins for healthcare nonprofits except for the first two months of the year.
While operating margins slipped slightly in July, they had been on an upward curve since March after two negative months in January and February, according to Kaufman Hall's National Flash Report in August.
That's for nonprofits. Here's how the four big for-profit healthcare systems fared in their second quarter versus the first quarter in terms of operating income and margin.
- Nashville, Tenn.-based HCA Healthcare reported an operating income of $2.3 billion and an operating margin of 14.5 percent for the second quarter versus operating income of $2.4 billion and a margin of 15.5 percent for the first quarter.*
- Dallas-based Tenet Healthcare reported an operating income of $604 million in the second quarter and a margin of 11.9 percent. That compared with $603 million and a 12 percent operating margin in the first quarter.
- King of Prussia, Pa.-based Universal Health Services reported operating income of $280.1 million and a margin of 8 percent in the second quarter. That compared with operating income of $278.7 million with an 8 percent margin in the first quarter.
- Franklin, Tenn.-based Community Health Systems reported operating income of $246 million in the second quarter with an operating margin of 7.9 percent. Those figures compared with operating income of $210 million and a margin of 6.8 percent in the first three months of the year.
Editor's note: HCA figures do not include asset sales and interest payments in calculation of operating income and margin.