Hospital Operating Margins Stagger While Supply and Drug Expenses Grow, According to New Syntellis Performance Solutions Data

CHICAGO – Dec. 1, 2023 – U.S. hospitals and health systems saw increases in revenues and patient volumes in October, but high costs continue to drag down overall financial performance, according to new data report from Syntellis Performance Solutions, now part of Strata Decision Technology. 

The median operating margin for hospitals nationwide, measured as actual year-to-date operating margin, remained unchanged at 1.6% for a second consecutive month in October. The flat performance continued a trend of unsteady operating margins. Since moving back into the black in March after more than a year of negative results, the metric has seen minimal movement most months, with the biggest increase followed by a sizable drop from June to July. 

“Hospitals continue to see gains in key areas, including six straight months of growth in inpatient and outpatient revenues,” said Steve Wasson, chief data and intelligence officer with Strata Decision Technology. “At the same time, persistent increases in total expenses continue to pressure hospital operating margins, making it difficult for these vital organizations to gain a solid foothold as they work to rebuild financial health.”