Hospital financials proved strong in January compared to previous years, though margins declined slightly from the previous month.

A deeper dive into the numbers behind the numbers in Kaufman Hall’s National Hospital Flash Report generates a nuanced story, with results that are relevant to setting long-term social health policy agenda and to the strategic management of complex provider organizations.

Following hospitals’ worst financial year since the beginning of the COVID-19 pandemic, 2023 presented a more promising trend for hospitals and health systems with general improvement across operational and financial measures.

The January issue of the Physician Flash Report features the most up-to-date industry trends drawn from the same data physician groups use to track their finances and operations.

Hospital performance in November signals continued stabilization and growth as operating margins improve. The median Kaufman Hall Calendar Year-To-Date Operating Margin Index reflecting actual margins was 2.0% in November.

Hospital performance in October reflects continued stabilization with margins above pandemic levels and volumes holding steady. The median Kaufman Hall Calendar Year-To-Date Operating Margin Index reflecting actual margins was 1.2% in October.

Physicians are operating at record-high levels of productivity compared to recent years but receiving less pay per unit of work. The median investment/subsidy per provider continues to increase, but the pace is slowing with only a 1% change from Q3 2022 to Q3 2023.