2019 Year-In-Review
National Hospital Flash Report
Based on 2019 data from Over 800 Hospitals
scroll_down.svg
mail.svg
Share the report
Dear Readers,
Welcome to our second annual National Hospital Flash Report Year in Review issue. This issue examines how hospitals across the country performed overall in 2019 compared to 2018, including breakdowns of performance on the driving factors of volumes, revenues, and expenses.
The nation’s hospitals held fast in 2019, and were able to maintain year-over-year margin and revenue improvements, despite rising expenses and mixed volume performance. Operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 39 basis points (bps) over prior year results, while Operating Margin rose 78 bps. Overall margins trended consistently above 2018 levels, but the gap in performance trended slightly downward over the course of the year.
Meanwhile, Total Expense per Adjusted Discharge also trended consistently higher than 2018 levels, jumping 294.5 bps overall in 2019. Ever-rising labor expenses contributed to the increase, up 91 bps in 2019. Non-Labor expenses also were on the rise, particularly in the areas of drug and purchased service expenses. Volume results were mixed, with some increases year over year, but five of six key volume indicators falling below budget expectations.
These results suggest that hospitals nationwide are finding ways to manage performance amidst multiple shifting forces. To illustrate the shifts, this issue includes sections on trends for each of the four core areas of Margin, Volume, Revenue, and Expense. Upward sloping lines indicate year-over-year variances that are becoming more positive, while downward sloping lines indicate variances that are becoming more negative.
Thank you, as always, for your interest as we continue to track the performance of U.S. hospitals as they navigate these uncertain times in healthcare. We appreciate your continued readership, and welcome any feedback. Thanks, Jim Blake
Managing Director and Publisher
Kaufman Hall
Real Data. Real Insight. Real Time.
©2018 Kaufman, Hall & Associates, LLC
scroll_up.svg
kha_logo.svg
National Hospital Flash Report
menu_icon.svg
Sign up now for access to the latest news and reports
SUBMIT
Become a subscriber
Receive our monthly reports
Your details
Become a subscriber
Receive our monthly reports
Your details
Become a subscriber
Receive our monthly reports
Your details