Hospitals' operating margins fell in July as fewer patients sought care

A recent article by FierceHealthcare states that hospitals nationwide took a hit this past July as "reduced patient volumes, a bump in bad debt and charity care whittled operating margins," resulting in a -1.6% median single-month operating margin index and a 9% revenue decline from June to July.

Building off of Kaufman Hall's reporting, reduced utilization saved 4% in total daily expenses, but expenses are projected to shift because of inflation. Additionally, the upcoming Medicaid disenrollment process also adds a layer of uncertainty to the mix.

"Hospitals that prioritize care transitions are performing better than institutions who do not,” Erik Swanson--senior VP of data and analytics for Kaufman Hall--noted. “Identifying steps that can ensure a smooth transition, such as obtaining prompt pre-authorizations and planning discharge early, will help organizations reduce expenses and improve patients’ experience.”

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