Healthcare providers saw increases in revenues, operating margins, and patient volumes in July, despite growing expenses. Health systems had a year-to-date operating margin of 2.1% in July, with hospitals at 6.5%. Patient demand played a significant role in these gains, with outpatient visits up 13.2% and inpatient admissions up 8.2% year-over-year. However, hospitals also saw significant increases in drug and supply expenses. Physician practices across the country also experienced growing expenses, with a median total expense per physician at $1.1 million in July. Addressing rising expenses is crucial for long-term stability in the healthcare industry.
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Hospitals’ Finances Are Getting Steadier, But Cost Pressures May Ruin That Soon
