Latest Takeaways
Executive Summary
Updated: July 30, 2024
- More than 90% of hospitals that reported fiscal 2022 cost reports submitted reports for fiscal 2023, providing a good sample to calculate key measures.
⚬ Median net patient revenue for all hospitals increased to $65.2 million in fiscal 2023, from $62.3 in fiscal 2022. Only long-term hospitals did not report an increase in median net patient revenue for fiscal 2023. Since fiscal 2021, they have plateaued at a median of about $20 million annually.
⚬ Operating margins improved for all types of hospitals except critical-access hospitals. Rehabilitation hospitals led with a median operating margin of 10%. While they had negative margins, acute-care, children's, psychiatric and long-term hospitals saw some improvement. Critical-access hospitals' median operating margin dropped to -7.25%, from -6.49% in fiscal 2022.
⚬ Salaries as a percentage of operating expenses increased for all hospitals, to 38.9% in fiscal 2023 from 38.2% in fiscal 2022. Psychiatric hospitals consistently have recorded the highest median salaries as a percentage of operating expenses since 2019, with salaries accounting for 51.7% of operating expenses in fiscal 2023. Long-term hospitals saw the biggest jump in the measure , to 43.7% in fiscal 2023, from 41.7% in fiscal 2022.
For more, see the Trend Selector below. - Median uncompensated care as a percentage of operating expenses at acute-care hospitals recorded a small increase year-over-year. The uptick largely was driven by for-profit hospitals, which recorded a median of 3.6%, compared with 2.9% in fiscal 2022. Government-owned hospitals saw a decrease in median uncompensated care as a percentage of operating expenses to 4% in fiscal 2023, from 4.8% in fiscal 2022. Nonprofit hospitals reported little change.
- Among the acute-care hospitals that reported, New York-Presbyterian Hospital reported the highest net patient revenue for 2023, at $9.3 billion, followed by NYU Langone Health at $7.2 billion. Cleveland Clinic edged Stanford Health Care, $7 billion to $6.8 billion. Mercy Walworth Hospital in Lake Geneva, Wisconsin, which operates under the name Mercyhealth Hospital and Medical Center–Walworth, and Coryell Memorial in Gatesville, Texas, led critical-access hospitals with $616 million and $306 million, respectively, in net patient revenue. For more, see the 100 Largest lists below.
- Median net margin is no longer included in the Modern Healthcare trend selector. This measure depends on a complete and accurate report of financial information on worksheet G3 of the cost reports. Few hospitals report non-operating expenses in a reliable way and are not required to be reported. Total non-operating expenses and net income as reported are available on each individual hospital's data page.
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100 Largest
By net patient revenue, for each hospital type. Optional download includes number of acute-care beds and total beds. Information is from cost reports, which are self reported by hospitals and systems, for those that have reported the data for a complete fiscal year as of January 2024. Note that the list for the latest year will update as more reports for that fiscal year are released.
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Modern Healthcare Data & Insights is produced by Tim Broderick, Sam McBroom, Michael Palazuk, and the Modern Healthcare editorial staff. All data and information are the property of Modern Healthcare and other sources where cited and are protected by copyright and other intellectual property laws. All rights are reserved by Modern Healthcare. Data and information may not be resold, republished, redistributed, sublicensed, or publicly displayed without the permission of Modern Healthcare.