June 2018
Profitability
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National Profitability Observations
Median operating margin and operating earnings before interest, taxes, depreciation, and amortization (EBITDA) both improved by 60 basis points (bps) over the prior year. This increase is being driven in part by favorable performance on the expense side, which outpaced slight decreases in revenue. The range of performance year-over-year was greater for operating margin compared with operating EBITDA margin, indicating that the change in capital expense (depreciation and interest) and associated balance sheet activity (capital expenditures and debt financing) played a role in profitability changes. The month-over-month change in median operating margin was very positive, with a 24 percent increase in profitability over the previous month and a 12 percent improvement over the budget plan. Kaufman Hall is closely monitoring the relationships between profitability, improvements in average length of stay, and the continued shift in care to outpatient settings. We will provide additional commentary in the coming months.
Profitability % Change
By Region
National Observations
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National Observations
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National Hospital Flash Report
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