Hospital Operating Margins Are Growing — But Not For All

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Hospitals saw improved finances in April, continuing from a strong first quarter, according to a report from Kaufman Hall. Margins and key indicators showed positive trends, with outpatient revenue and emergency room visits increasing. However, there is a gap forming between high- and low-performing hospitals, with 40% in the US losing money. Financial stability is being achieved through proactive cost-saving strategies and improved care transitions. While some large hospital chains reported increased net income, the pressure to manage supplies and staffing continues to grow as demand for care rises. Overall, the industry is stabilizing towards a new normal.

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