Axios has found that hospital admissions, surgeries, and other procedures have been flat, but that hasn’t prevented hospitals from increasing revenue. Rising healthcare costs are a contributing factor to hospitals making more money than ever. Medxoom’s proprietary price comparison shopping technology can help health plan members find the best price and quality prior to getting care.
From Axios:
“The big picture: America’s rural hospitals are dying. But large not-for-profit hospital systems in cities and suburbs are doing extremely well as premiums rise and as patients struggle to afford their medical bills.
Details: Axios analyzed the financial statements of 31 prominent not-for-profit hospital systems for the first 3 months of 2019.
- This sample collectively generated $68.5 billion of revenue in the first quarter of this year. That’s $274 billion annualized, or more than one-fifth of all hospital spending.
- The combined net margin (after factoring in investment income) was 16.4%, a large jump from 5.5% in 2018.
- Not-for-profit hospitals don’t pay taxes and don’t have “shareholders” like publicly traded companies, so they are required to reinvest any surplus cash into their communities. But that money is often directed toward building new patient towers, other construction projects and executive pay instead of charity care or other forms of “community benefit.”
Medxoom can help.
