News: Hospital margins fell 174% in April due to COVID-19

The latest National Hospital Flash Report by Kaufman Halls found that hospital finances across the country suffered a “brutal” month in April as “steep volume and revenue declines drove record-poor margin performance.”

Operating margins fell 174% compared to April last year and were down 118% from March after hospitals experienced the first full month of COVID-19 impacts. According to the report, operating margins fell 282% year-over-year and 120% compared to March, and median hospital operating margins fell to -29%.

Operating room minutes were also impacted, falling 61% compared to April 2019. Discharges also fell 30% year-over-year and emergency department visits dropped 43%.

Despite aggressive cost-cutting efforts to mediate the losses, the report suggests that hospitals and healthcare systems will need to address major changes in their care models, cost structures, and competitive dynamics as they prepare to reopen.

The report notes that data in the coming months will “continue to shape our understanding of the challenges ahead.”

Editor’s note: The full National Hospital Flash Report can be found here. The Kaufman Hall synopsis of the report can be found here. To read all of ACDIS’ coverage of the COVID-19 pandemic, click here.