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From -6.8% to 12.2%: 34 health systems ranked by operating margins

March 12, 2024
Becker's Hospital Review
Health system operating margins have shown significant improvement in 2023, with a range from -6.8% to 12.2% across 34 health systems, after facing a challenging year in 2022. This change is attributed to increased patient volumes boosting revenue, which helped mitigate the effects of rising labor and supply costs. However, despite the overall progress, discrepancies persist as many hospitals still report financial losses, with high-performing institutions increasingly distancing themselves from lower-performing ones. Kaufman Hall's analysis highlights this divide, emphasizing the ongoing financial instability within the healthcare industry, reflected in the fluctuating average operating margins throughout the year.
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