Hospitals' financial health grew in 1993, according to MODERN HEALTHCARE's Index of Leading Economic Indicators.
The index, prepared by HCIA, a Baltimore-based healthcare information company, provides the most up-to-date quarterly data on key financial indicators affecting the nation's hospitals.
The indicators are gathered quarterly from Medicare cost reports. For this quarter, the data is based on hospitals with fiscal years ending between Jan. 31 and Sept. 30, 1993. Those figures are compared with information filed by the same hospitals in the previous year.
This quarter's index includes data from 3,284 acute-care hospitals.
Margins improved for hospitals in 1993, the HCIA data shows. Hospitals reported an operating profit margin of 3.15% in 1993, compared with 2.98% in 1992.
Total profit margins also increased in 1993 to 4.61%, compared with 4.5% in 1992, HCIA reported.
Hospitals' fiscal health showed up in other measures. Days cash on hand rose to 48.55 in 1993, compared with 45.49 in 1992. In addition, days in net accounts receivable dropped to 67.88 in 1993, compared with 70.91 in 1992.