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Margins have consistently performed below 2019 levels as a result. Even so, the last few months had shown some signs of potential progress, with margins increasing incrementally month-over-month.

The COVID-19 pandemic continued to drive significant volatility in operating performance for hospitals across the country in July, suppressing volumes and revenues compared to the same period last year.

Even when including the CARES Act relief, the year-to-date median hospital operating margin is still 200-300bps below historical and sustainable performance.

Few organizations can maintain themselves for an extended period when total expenses are greater than total revenues. Read more in our report.