Hospital working margins continued to say no in 2022 as labor bills climbed, however monetary pressures could also be easing, in response to a brand new report.
The median hospital working margin dropped 39% from 2021 to 2022 as labor prices elevated 9%, a month-to-month Kaufman Corridor evaluation of knowledge from greater than 900 hospitals discovered. Nevertheless, expense development slowed and inpatient volumes improved in December, which might sign a extra secure monetary outlook for early 2023, analysts mentioned within the report. Listed here are 5 takeaways from the information.
- The median hospital working margin ticked up 0.2% from November to December, reversing an 11-month streak of margin compression.
- Labor bills per adjusted discharge elevated 4% from 2021 to 2022. However that metric declined 1% from November to December, suggesting that hospitals are utilizing fewer contract staffing providers and that they’re working extra effectively. Full-time equal staff per occupied mattress rose 4% November to December.
- Hospitals’ dangerous debt and charity care as a proportion of gross income dropped 8% from 2021 to 2022.
- Adjusted discharges elevated 3% from 2021 to 2022, whereas common size of keep remained flat.
- Outpatient income jumped 8% from 2021 to 2022 and 20% from 2019 to 2022.