Contrary to Medicare data, hospitals are experiencing historically high margins across all payors.
According to a June report from the Medicare Payment Advisory Commission (pdf), the average overall all-payor margins at hospitals in 2010 were at 6.4 percent, the highest rate in the past 12 years. Also in 2010, three out of every four hospitals had positive total margins. This is a stark contrast from the overall Medicare margins of hospitals in 2010, which were negative 4.5 percent.
The total hospital margin for all payors — Medicare, Medicaid, other government and private payors — factors in the relationship of all hospital revenues to all hospital costs. It also includes investment income. Here are 12 statistics on the overall average all-payor margin at U.S. hospitals from 1999 through 2010.
*The major drop in total margin from 2007 to 2008 reflects the investment losses suffered during the stock market crash in 2008.
According to a June report from the Medicare Payment Advisory Commission (pdf), the average overall all-payor margins at hospitals in 2010 were at 6.4 percent, the highest rate in the past 12 years. Also in 2010, three out of every four hospitals had positive total margins. This is a stark contrast from the overall Medicare margins of hospitals in 2010, which were negative 4.5 percent.
The total hospital margin for all payors — Medicare, Medicaid, other government and private payors — factors in the relationship of all hospital revenues to all hospital costs. It also includes investment income. Here are 12 statistics on the overall average all-payor margin at U.S. hospitals from 1999 through 2010.
|
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
|
3.6% |
3.9% |
3.7% |
3.7% |
4.3% |
4.3% |
4.8% |
5.4% |
6% |
1.8% |
4.2% |
6.4% |
*The major drop in total margin from 2007 to 2008 reflects the investment losses suffered during the stock market crash in 2008.
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