Hospitals realized stronger financial performance in January 2023 compared to the previous year, as the start of 2022 coincided with the Omicron variant surge. The median year-to-date (YTD) operating margin index for hospitals was -1% in January 2023, compared to -3.7% in January 2022. The 2023 YTD operating margin index was still lower than that of 2021 at -0.1%, and 2020 at 3.1%.
Hospitals Face Persistent Expense Challenges
Patient volumes, emergency department visits, discharges and total revenues were down in January 2023 compared to December 2022. Meanwhile, expenses—particularly related to labor—increased over the same period.
