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Hospitals need more than 0% margins, AHA insists

By Admin | August 05, 2023

The American Hospital Association is taking on a message that might be common sense to many but is a source of misconception to some: hospitals and health systems do not operate with a goal to incur financial losses. 

"Some analyses seem to suggest that anything above a zero percent margin is inherently bad, as though the operating goal of hospitals and health systems should be to incur financial losses," Bharath Krishnamurthy, director of health analytics and policy for the AHA, wrote. "This would be financially reckless and ignores the reality that hospitals and health systems need some margin to keep pace with new life-sustaining advances in medicine, help support their workforce and continue to keep their doors open to care for their patients and communities." 

The AHA's commentary about "margin misconceptions" arrives as the average hospital operating margin is seeing incremental improvement month over month. In April, the...(More)

For more info please read, Hospitals need more than 0% margins, AHA insists, by Becker's Hospital CFO Report

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