News Headlines Article

Operating margins stabilize, but not-for-profit hospitals still vulnerable
Modern Healthcare

Not-for-profit and public hospitals’ revenue growth has edged ahead of expense inflation for the first time since 2015, according to a new report.

Median annual revenue growth rose to 5.1% while expense growth dropped to 5% in 2018, new preliminary data on 150 hospitals from Moody’s Investors Service show. Although hospitals were able to meaningfully reduce their expense growth rate from 7.1% in 2016 to 5.7% in 2017, that didn’t keep up with revenue growth’s decline from 6.1% to 4.6%.