Operating Margins at Half of Community Hospitals at 2% or Less

Operating margins at community hospitals range from 4% to -22%, with half of the hospitals operating with margins at two percent or less. Operating margins are defined as revenue less operating expenses; the operating margin does not include investment income. About 12% of community hospitals have less than 30 days of cash on hand; 67% have more than 80 days of cash on hand. About one-third of community hospitals reported that operating costs have increased by more than 5% over the past three years; 60% reported that operating costs have increased by more than 3%. These were the findings . . .