The median profit margin of U.S. hospitals increased from near zero in the third quarter of 2008 to an average of 8.4 percent in the second quarter of 2009, according to an analysis of hospital financial performance released today by Thomson Reuters. About 20 percent of hospitals still had negative total margins in the second quarter, which is similar to the rate seen before the recession began in late 2007. This represents an improvement from the first quarter of 2009, when 30 percent of hospitals were operating with negative margins.
Hospital admissions also increased in the second quarter of 2009, according to the report, moving into positive territory after a period of decline that began shortly after the recession started.
The study analyzes a combination of proprietary and public data from more than 400 hospitals nationwide. Trends in revenue and profit, employment levels, closures, inpatient volume, days cash on hand, and case mix are evaluated.
