2018 Year-In-Review
Profitability
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EBITDA Margin by Region ?
Regionally, 2018 performance as compared with 2017 was mixed. EBITDA Margins improved for the South and Great Plains regions, and eroded slightly for the Northeast, Midwest, and West. In addition to its favorable year-over-year performance, the Great Plains region also outperformed budget expectations, as did hospitals in the West.
% Change
Absolute Change
% Change
Absolute Change
National Profitability Observations
Nationally, 2018 was generally a year of improvement for hospitals. Operating Margin rose about 5 percent compared to 2017, and outperformed budget by 4.4 percent. The year saw very little change in EBITDA Margin. Although median profitability indicators improved, the distribution of changes from 2017 showed pockets of both stronger growth and worsening declines.
Unless noted, figures are actuals and medians expressed as percentage change
Profitability % Change
Budget Variance
Year Over Year
Year Over Year Distributions (click to enlarge)
Operating EBITDA Margin
(3.3%)
(0.2%)
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Operating Margin
4.4%
5.9%
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By Region
National Observations
By Bed Size
Trends
EBITDA Margin by Bed Size
EBITDA Margin metrics yielded some interesting differences across bed-size cohorts. Hospitals with 26-99 and 200-299 beds saw their EBITDA Margins improve over the previous year. The 26-99 bed cohort also saw even greater favorable profitability performance compared to budget expectations. The remaining bed-size cohorts underperformed relative to budget, and all but the 200-299 bed-size group underperformed slightly compared to 2017. Taken together with the national observations, these results indicate that profitability performance was strongest among hospitals with 26-99 beds, which comprise nearly 45 percent of all hospitals in the United States.
% Change
Absolute Change
% Change
Absolute Change
Profitability Trends
EBITDA Margin performance improved throughout the year as compared with 2017. The first half of 2018 had a few months with unfavorable performance compared with 2017, but the second half had only one month with unfavorable performance. The increasing rate of improvement indicates that many hospitals either slowed their rate of profitability declines, or increased their rate of profitability improvement throughout the year.
EBITDA
Operating Margin
EBITDA
Operating Margin
By Region
National Observations
By Bed Size
Trends
©2018 Kaufman, Hall & Associates, LLC
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