Kaufman Hall's recent report highlights a positive start for hospitals in 2025 with a median operating margin rise to 4.4% in January, benefiting from high patient volumes. However, Erik Swanson, managing director, notes that despite the revenue boost, hospitals are grappling with rising costs in drugs, supplies, and services. As higher acuity patients require more expensive care, hospitals must adopt strategies like group purchasing and better discharge planning to mitigate expenses and maintain profitability. Accurate clinical documentation is also emphasized to ensure proper reimbursements.
Kaufman Hall's report shows hospitals started 2025 with stable performance, reflecting high patient volumes but facing pressures from rising costs on margins.
The monthly median operating margin for hospitals increased to 4.4% in January 2025, a notable rise compared to previous months and 2024 as a whole.
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