January 31, 2024- Recently, hospitals and health systems have experienced difficult years in terms of finance since the beginning of the COVID-19 pandemic. However, 2023 presented a more promising trend for hospitals and health systems. According to the latest data from Kaufman Hall, outpatient revenue has grown significantly, increasing by more than 40% compared to 2020.
The median calendar year-to-date operating margin index for hospitals was 2.3% in December, according to Kaufman Hall. Provider productivity has increased, while expenses continue to outpace revenue growth. Improved margins may indicate that hospitals and health systems are taking proper steps to adapt to the new environment, according to Kaufman Hall.