June 2019
National Hospital Flash Report
Based on May Data from Over 600 Hospitals
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Dear Readers, Welcome to the June issue of the National Hospital Flash Report. Hospitals across the nation continued to grow profitably in May, following April’s good performance. These results occurred despite mixed revenue performance, primarily driven by eroding inpatient volumes. Declining inpatient volumes and revenues coupled with improved margin performance set the stage for this month’s Spotlight. We examine the relationship between profitability and volumes in the nation’s largest hospitals compared to the national cohort. The Spotlight analysis shows that the metrics driving profitability in the largest hospitals vary significantly from the national hospital cohort, and highlights the importance of flexing variable costs to match declining volumes. The largest institutions are particularly sensitive to volume fluctuations impacting the bottom line, especially as managing profitability directly translates into managing variable costs in the value-based care paradigm. Please continue providing your valuable commentary. As always, we aim to shape the National Hospital Flash Report to our audience’s needs. Your questions and commentary provide the opportunity for us to directly address the needs of our readers. Thank you,
Jim Blake
Managing Director and Publisher
Kaufman Hall
Real Data. Real Insight. Real Time.
©2019 Kaufman, Hall & Associates, LLC
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National Hospital Flash Report
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