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 in its AHA Hospital Statistics 2009 Edition. Net revenue at 4,897 community hospitals grew 6.7% to $626 billion in 2007, while aggregate expenses grew 5.7% to $583 billion. The overall profit margin was 6.9% in 2007. Community hospitals include nonfederal, short-term, general and specialty hospitals. Caroline Steinberg, vice president of trend analysis at the AHA, said that although the profit figures set records, she would only describe them as modest gains that are bound to be offset in 2008 by recent market downturns. Much of the profit growth in 2007 came from nonoperating revenue sources like investments, which in many cases have already been wiped out.
Late News: Community hospitals see record profits in 2007
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