July 2018
Profitability
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National Profitability Observations
Hospital sector profitability remained favorable in June. While most organizations budgeted for reduced operating profitability in 2018, overall industry performance is ahead of budget, and outperforming 2017. Both median operating margin and operating EBITDA margin are more than 200 basis points (bps) ahead of budget. Median operating margin improved 53 bps and median operating EBITDA margin improved by 15 bps over the prior year. Deconstruction of the data for regional and size differentials indicates that nearly all cohorts (by size and geography) performed favorably compared to budget, suggesting that healthcare leaders are being conservative in organizational performance expectations in this time of uncertainty.
June represented the final month of the fiscal year for many organizations, and therefore the profitability performance may be reflective of one-time adjustments.
Profitability % Change
By Region
National Observations
By Bed Size
By Region
National Observations
By Bed Size
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National Hospital Flash Report
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