Healthcare Business News
 


U.S. hospitals saw record profits in ’07: AHA


Posted: November 7, 2008 - 1:00 pm ET
Tags:

U.S. community hospitals enjoyed record profits in 2007, posting $43 billion more in revenue than expenses and creating the largest single-year jump in profit margins in at least 15 years, according to figures released by the American Hospital Association.

Net revenue at the 4,897 community hospitals grew 6.7% to $626 billion in 2007, while aggregate expenses grew 5.7% to $583 billion. Although both rates of growth slowed compared to 2006, expenses grew slower than revenue—a trend that has held since 2002—producing an overall profit margin of 6.9% for 2007. Community hospitals include nonfederal, short-term, general and specialty hospitals.

Meanwhile, operating revenue at community hospitals topped $600 billion for the first time. But the statistic climbed at a slower rate of growth, 6%, than in 2006 and 2005, when operating revenue grew by 7.3%.

In a resumption of historical trends, the number of public not-for-profit community hospitals decreased by 0.7% to 1,111 in 2007; in the past two decades, 2006 was the only year in which the number of public hospitals grew. The number of investor-owned community hospitals also decreased, by 1.9% to 873 in 2007, in the first such decrease since 1999. -- by Joe Carlson

What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at mheditorial@crain.com. Please be sure to include your hometown and state, along with your organization and title.

Advertisement | View Media Kit

 

Search ModernHealthcare.com:


 

Switch to the new Modern Healthcare Daily News app

For the best experience of ModernHealthcare.com on your iPad, switch to the new Modern Healthcare app — it's optimized for your device but there is no need to download.