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How Many Hospitals Have Negative Margins?

Nearly a quarter [24%] of hospitals in the U.S. had negative total margins in fiscal year 2011, where total expenses exceeded total net revenue. Another 4.4% had negative operating margins. Over the past 20 years, the percentage of hospitals operating at a loss on total margin has fluctuated from a low of 19.4% in 1996 to highs over 32% in both 1999-2000 and again in 2008.

Source: Table 4.1: Aggregate total hospital margins, operating margins, and patient margins; Percentage of hospitals with negative total margins; and Aggregate non-operating gains as a percentage of total net revenue, 1991-2011. In: Trendwatch Chartbook 2013. American Hospital Association, Feb. 26, 2013. http://www.aha.org/research/reports/tw/chartbook/2013/table4-1.pdf  Chart: http://www.aha.org/research/reports/tw/chartbook/2013/chart4-1.pdf

Posted by AHA Resource Center, (312) 422-2050, rc@aha.org

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