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Physician and provider productivity is on the rise as patients increasingly seek care in ambulatory settings. However, increased revenue and productivity in Q2 was not enough to offset rising expenses as the median investment/subsidy per provider still rose 5% year-over-year to $224,243.

Hospital finances showed signs of stabilizing in May amid slightly improving operating margins, declining expenses and notable increases in outpatient visits.

Hospital finances broke even in April amid a continuing trend of high expenses and the unwinding of the Medicaid continuous coverage requirement of the COVID-19 public health emergency

Hospital finances improved slightly in March as hospital leaders navigate high expenses and economic pressures. While margins continue to stabilize, they remain below pre-pandemic levels—leaving hospitals in a vulnerable position should a recession or new public health emergency arise.

Physician and provider productivity is on the rise as patients continue to reengage and seek out care that was put off during the pandemic.

In conversations with hospitals and health system leadership across the U.S., most management teams express the same goal: get back to breakeven. For many, the road to breakeven will be bumpy with gains and setbacks along the way.

Hospital finances are beginning to stabilize as razor thin margins become the new normal. The high level of variance that plagued hospital margins over the past three years is beginning to subside among pricing and inflationary pressures affecting expenses.

Hospitals entered 2023 on more stable footing, following the worst financial year since the start of the pandemic. However, they still face a range of persistent challenges, including higher labor expenses, lower patient volumes, and a fundamental shift in where patients access care services.

Last year was the worst financial year for hospitals and health systems since the start of the COVID-19 pandemic, according to the latest data from Kaufman Hall.

America's providers are more productive and seeing more patients than ever—particularly in primary care settings—resulting in an increase in revenue in the last quarter of 2022. However, increased expenses outweighed improved revenue.

Hospitals experienced a slight increase in operating margins in November 2022—though margins remained negative for 2022 to date—according to the latest National Hospital Flash Report from Kaufman Hall.

Just a few months remain in what is shaping up to be one of the worst financial years on record for hospitals. Expense pressures—particularly with the cost of labor—outpaced revenues...