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Hospital Financial Performance
TrendWatch, January 1999

The financial performance of hospitals improved in the 1990’s as hospitals diversified services, formed health systems, and decreased costs. This issue of TrendWatch compares the performance of hospitals over time and discusses potential implications of the implementation of the BBA.

The following are Charts 9 & 12 found in this issue:

Hospitals in health systems have done better than other hospitals.
Aggregate total margins by system status
Percentage of hospitals in systems
 

 
As hospitals have controlled costs, they have eliminated Medicare losses, reducing the need to cost shift to other payers.
Aggregate loss or gain by payor category, in billions

Also, in this report:

  • Hospitals diversify services
  • Hospitals that have diversified have out performed their peers
  • Hospitals in high managed care communities face rough times
  • After years of losses, hospitals are relying on Medicare to maintain margins
  • Will hospitals be forced to continue discounts to private payers as Medicare payments decrease due to the BBA?
  • Stats to Know


Click here to download this report in PDF format.

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