EBITDA Margin by Region ^*

All regions saw Operating EBITDA Margin up year over year and most were favorable to budget in October. These increases are primarily driven by favorable increases in inpatient and surgical volumes. The Northeast/Mid-Atlantic saw the greatest year-over-year increase, up 26.7 percent or 246.3 bps compared to October 2018, but just 0.6 percent or 11.4 bps above budget. This region of the country benefited from strong improvements in volume-adjusted revenue, and a more than 11 percent reduction in Bad Debt and Charity Care as a Percent of Gross. Meanwhile, the West saw the biggest increase over budget at 15.5 percent or 161.1 bps, but rose just 0.6 percent or 7.5 bps year over year. The Midwest was the only region to perform below budget. However, this area of the country continues to maintain stable performance as a result of strong labor expense management.

National Profitability Observations

Operating performance was strong at hospitals across the country in October, with margins increasing across the board. Month-over-month performance was particularly robust. Operating Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Margin was up 20 percent or 250.1 basis points (bps) month over month, while Operating Margin was up 34.8 percent or 285.7 bps. Operating EBITDA Margin was up 6 percent or 85.1 bps year over year, and performed 2.6 percent or 44.4 bps above budget expectations. Operating Margin rose 10.4 percent or 86.2 bps year over year, and was up 7.4 percent or 68.5 bps compared to budget. Contributing factors include increased volumes, modest revenue gains, lower Bad Debt and Charity care, and decreases across most expense metrics for the month.

Unless noted, figures are actuals and medians expressed as percentage change

Unless noted, figures are actuals and medians expressed in basis points

Profitability % Change

Profitability Absolute Change

EBITDA Margin by Bed Size