ANN ARBOR, Mich., Nov. 9 /PRNewswire/ -- The median profit margin of U.S. hospitals increased from near zero in the third quarter of 2008 to more than 8 percent in the second quarter of 2009, according to an analysis of hospital financial performance published today by Thomson Reuters.
The recovery has been broad-based, with all classes of hospitals -- small, medium and large community hospitals, teaching hospitals and major teaching hospitals -- showing positive median margins.
The study tracks two dozen key financial indicators, using proprietary and public data to dissect the balance sheets of more than 400 hospitals nationwide. It evaluates trends in revenue and profit, employment levels, closures, inpatient volume, days cash on hand, and case mix to gauge the fiscal health of the nation's hospitals.
Following are the key findings of the analysis:
"U.S. hospitals are on track to come out of the recession in better financial shape than they were in when the downturn began," said Gary Pickens, PhD, chief research officer at Thomson Reuters and one of the study's authors. "When we published our first analysis of hospital economic health in the fall of 2008, hospitals were facing unprecedented economic stress and staring down a real crisis. Now, by taking aggressive measures to reduce costs, the majority of hospitals are positioned for a strong recovery."
The Healthcare & Science business of Thomson Reuters will update this report regularly as an ongoing benchmark of hospital financial performance.
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SOURCE Thomson Reuters
|SOURCE Thomson Reuters|
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