A Look at Hospital Operating Margins in the United States

Over the past several years, hospitals have experienced increasing costs coupled with decreasing net patient revenue, ultimately impacting their bottom line. U.S. hospital operating margins remain negative, despite gradual improvement from pandemic-era lows. In 2024, the revenue-weighted operating margin across nearly 2,900 acute care hospitals was -2.9%, up from -6.3% in 2020 but still below breakeven, according to Definitive Healthcare data. While overall performance has improved, financial pressure is uneven, varying significantly by hospital size and region, with mid-sized hospitals and Northeastern facilities experiencing the most sustained strain.

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Source: https://www.definitivehc.com/resources/healthcare-insights/hospital-operating-margins-united-states

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