Report: Inflation continues to burden hospitals as margins remain near zero

Hospital and health system margins improved slightly in March, but continue to sit at “razor-thin, near-zero levels,” putting hospitals in a vulnerable position should a recession or a new public health emergency materialize, according to the latest report on hospital finances by Kaufman Hall. 

“While it appears that hospital finances are stabilizing, that doesn’t mean that all is well,” said Erik Swanson, senior vice president of Data and Analytics with Kaufman Hall. “Under the seemingly calm surface, there are significant challenges — especially labor shortages and diminished margins — that could quickly reach the surface should another crisis arise.”