Becker's Hospital Review

14 CFO / FINANCE Hospital profitability: 36 statistics By Laura Dyrda T he average hospital operating margin dropped from June to July, but has increased year over year, according to the Kaufman Hall National Hospital Flash Report. e report, released Aug. 28, included data from more than 1,300 hospitals across the U.S. Kaufman Hall noted expenses dropped in July, but not enough to offset revenue losses and bad debt and charity care increased as well. Here are 36 statistics on hospital profitability, focused on operating margin and EBITDA nationally and by region. National Operating Margin July 2023 vs. June 2023: -31 percent July 2023 vs. July 2022: 20 percent First half of 2023 vs. First half of 2022: 20 percent EBITDA July 2023 vs. June 2023: -26 percent July 2023 vs. July 2022: 13 percent First half of 2023 vs. First half of 2022: 12 percent West Operating Margin July 2023 vs. June 2023: -42 percent July 2023 vs. July 2022: 7 percent First half of 2023 vs. First half of 2022: 16 percent EBITDA July 2023 vs. June 2023: -29 percent July 2023 vs. July 2022: 0 percent First half of 2023 vs. First half of 2022: 5 percent Midwest Operating Margin July 2023 vs. June 2023: - 45 percent July 2023 vs. July 2022: 21 percent First half of 2023 vs. First half of 2022: 6 percent EBITDA July 2023 vs. June 2023: -44 percent July 2023 vs. July 2022: 10 percent First half of 2023 vs. First half of 2022: 4 percent South Operating Margin July 2023 vs. June 2023: -16 percent July 2023 vs. July 2022: 32 percent First half of 2023 vs. First half of 2022: 27 percent EBITDA July 2023 vs. June 2023: -16 percent July 2023 vs. July 2022: 21 percent First half of 2023 vs. First half of 2022: 15 percent Northeast / Mid Atlantic Operating Margin July 2023 vs. June 2023: -38 percent July 2023 vs. July 2022: 19 percent First half of 2023 vs. First half of 2022: 25 percent EBITDA July 2023 vs. June 2023: -39 percent July 2023 vs. July 2022: 7 percent First half of 2023 vs. First half of 2022: 17 percent Great Plains Operating Margin July 2023 vs. June 2023: -40 percent July 2023 vs. July 2022: 39 percent First half of 2023 vs. First half of 2022: 43 percent EBITDA July 2023 vs. June 2023: -25 percent July 2023 vs. July 2022: 18 percent First half of 2023 vs. First half of 2022: 18 percent n Pennsylvania hospital struggles to meet payroll By Noah Schwartz T im Reeves, CEO of Renevo, Pa.-based Bucktail Medical Center, is sounding the alarm on the hospital's rapidly deteriorating financial situation, The Express reported Aug. 28. The CEO of the critical access hospital is concerned that it might not be able to meet payroll. According to Mr. Reeves, the facility lost $150,000 per month in 2022. The hospital has $32,000 in the bank and will need $193,000 to meet the Sept. 8 payroll and tax deadline, according to Penn Live. Mr. Reeves sent a letter to local government officials requesting their help in ensuring that the facility stays open. The CEO says that its critical access status, which is designed to increase federal reimbursement funds, is not enough to cover costs. "Medicare claims to reimburse us, as a critical access hospital (CAH), at 101 percent of our cost for inpatient and some other services, except, Medicare Sequestration cuts Medicare payments 2 percent annually, soon to be 3 percent," Mr. Reeves said. "And our Medicaid Cost Report was cut nearly in half by $300,000. These do not cover our costs." n

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