News Report | April 7, 2019
Investment Income Responsible For 47% Of Hospitals’ Net Margin In 2017 & 2018
During 2017 and 2018, audits for 90 independent stand-alone hospitals in nine states revealed that about 47% of the hospitals' net margin was generated by income from investments. Most hospitals (61%) had operating margins below 3%, which is a general industry benchmark related to the ability of a hospital to sustain its services and fund debt repayment and growth capital projects. Other sources of non-patient care revenue included: tax funding for government hospitals (district taxes, property taxes, value-added taxes), gains on disposal of property, rental income, state funding, and donations.
The 90 hospitals in the analysis were . . .