Urban Hospitals in Alaska Have Profit Margins 10% Higher Than Nationwide Average

Urban hospitals in Alaska are posting some of the highest profit margins in the country, as their average operating margin was 16.2 percent in 2010 while the nationwide average was roughly 6.3 percent, according to an Alaska Public Radio News report.

Last month, it was reported that Alaska Regional Hospital in Anchorage, an urban hospital owned by Nashville-Tenn.-based Hospital Corporation of America, had the highest profit margin in Alaska in 2010 at 29.4 percent.


Bruce Lamoureux, CEO of Providence Health & Services Alaska, which had a 13-percent profit margin in 2010, said in the report that several factors influence urban hospital operating margins. High occupancy rates and generous Medicaid reimbursements are the two biggest reasons, according to the report.

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