Although hospitals’ operating margins have improved significantly compared to the first six months of 2020, they remain nervous due to the increased uncertainty in the spread of the Delta variant of the coronavirus. To a new report Kaufman Hall, a healthcare consulting company.
In June, without considering funding for the Coronavirus Aid, Relief, and Economic Security Act, the median operating margin index (composed of the national median of the Kaufman Hall data set, adjusted for hospital allocation) was 2.8%. With this funding, it is 4.3%.
The report used data from more than 900 hospitals collected every month for the past three years. The report stated that this was an increase of 89.5% over the first six months of last year, excluding funding from the CARES Act, and an increase of 48.7% if funding was included. . year.
Sales have also increased since 2020, but they are still lower than pre-pandemic levels. For example, the adjusted number of discharges from January to June this year increased by 10.1% compared to the same period last year, but decreased by 4.4% compared to the first six months of 2019. Similarly, the number of emergency department visits this year has increased by 3.2% compared with 2020, but has fallen by 14.8% compared with 2019.
The report pointed out that despite the uneven numbers, compared with 2019 and 2020, hospital revenue has increased so far this year. Part of the reason is the increase in outpatient income. From January to June, total operating income (excluding CARES bill funds) increased by 18.2% compared to the first six months of last year, and increased by 7.9% compared to 2019. Outpatient revenue increased by 24.3% compared to 2020 and 9.6% from 2020. 2019.
But the report shows that spending continues to rise, offsetting the growth in revenue and sales. Total expenditure in the first six months of this year increased by 8.5% compared to the same period last year, and increased by 9.4% compared to January to June 2019.
Erik Swanson, senior vice president of data and analytics at Kaufman Hall, said in a press release: “Although revenue and volume continue to show signs of improvement, rising costs are leading to relatively low hospital profit margins.” “And the Delta Covid-19 variant The increasing spread of the country may stifle further recovery in the coming months.”
According to statistics, among the new cases reported in the last two weeks of July, the Delta variant accounted for the vast majority (93%) Data from the Centers for Disease Control and Prevention.
As the pandemic has shown, cases may accelerate rapidly, which means that hospital profit growth is fragile.
Photo: Claude Nakagawa, Getty Images
