Decreased Volume Variability & Declining Labor Expenses Are Helping Hospitals’ Finances Bounce Back
Hospitals’ operating margins are still in a worse place than they were before the pandemic, but 2023 is ending as a much more stable year for hospital finance than 2022, according to a new report from Kaufman Hall. Because this year hasn't had any large Covid-19 surges, hospitals have seen less variability in patient volumes. This has helped them allocate their resources more efficiently and decrease their reliance on expensive contract labor.
