Total hospital profit margins inched up during the first half of the year, driven by a significant jump in hospital revenues, according to the American Hospital Association's latest quarterly hospital economic report.
The report is based on a monthly survey of a representative sample of 2,000 hospitals.
The AHA said hospitals' total profit margin, which includes all forms of revenues, hit 6% during the first six months of 1995, up slightly from 5.9% during the same period last year.
Hospitals' patient margin, which measures solely patient-care revenues and expenses, slid to 0.7% during the first six months of the year, compared with 0.9% during the same period of 1994.
The uptick in total hospital profitability is the result of rebounding hospital revenues and expenses, which took a respite last year, rising at some of the lowest rates in years.
From January through June, total hospital revenues jumped 6.2%, compared with 4.4% during the same six-month period last year. Hospital expenses, meanwhile, rose 6% during the first two quarters, compared with 4.7% during the same period in 1994, the AHA reported.