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Blog: Hospitals prosper on commercial payers as Medicare margins sink to -9%
Modern Healthcare

Margins on hospital Medicare business are expected to deteriorate this year, bottoming out at a negative 9% on average, according to a report by the commission that advises Congress on Medicare payments.

But the good news is that hospitals are making healthy profits and surpluses overall on the strength of productivity gains, cost-cutting and their commercial business, the Medicare Payment Advisory Commission said in a little-reported study in March.

In fact, hospitals on average posted margins from all payers of 7.3% in 2014, a 30-year high, the MedPAC report shows.