Nearly halfway through 2022, margins are cumulatively negative. While some metrics have normalized, hospitals continue to perform below pre-pandemic metrics, and there is an uncertain outlook for the rest of the year.
The median Kaufman Hall Operating Margin Index for May was -0.33%, far from sustainable levels.
May’s warmer temperatures led to more ED visits as people spent more time outdoors, which drove up volumes and revenues. But expenses remain a substantial challenge. Hospitals are still seeing higher labor costs and fewer hours worked, as inflation and turnover worsen long-standing labor shortages.
Our June issue of the National Hospital Flash Report covers these and other key performance metrics.
Erik Swanson is a Senior Vice President with Kaufman Hall’s Data Analytics practice, focusing on Performance Improvement.
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