Hospital Margins Stabilized In 2024

Median hospital operating margins in 2024 stabilized at about 5% for the year. However, after allocating shared corporate office expenses, median hospital margins in January 2025 were nearly double what they were in all of 2024, at 4.4% in January 2025 compared to about 2% during 2024. These shared corporate office expenses include salaries for hospital-based physicians and clinical professionals, as well as corporate departments like information technology, human resources, and administration.

During 2024, median hospital margins, without accounting for the shared corporate expenses, ranged from 4.6% in March 2024 to 5.0% in December 2024, and . . .