New data from Strata Decision Technology shows that hospitals and physician groups saw their financial margins stabilize in the second quarter of 2024, despite high costs for drugs and labor. Operating margins for health systems held steady at 2.3% in June, with hospitals’ gross revenues slightly improving compared to the previous year. However, there was a decrease in patient volumes, particularly in outpatient visits, while labor expenses continued to rise. Overall, healthcare providers are facing growing expenses, with the median total expense per physician increasing by 16.3% compared to the previous year. The report highlights concerns about financial sustainability amid market volatility.
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Providers’ Finances Are Steady, But Cost Pressures Still Loom
