Two ma­jor credit-rat­ing agen­cies have re­leased re­ports show­ing that op­er­at­ing mar­gins have im­proved for not-for-profit hos­pi­tals and health sys­tems.

Modern Healthcare - - LATE NEWS -

For the first time since 2011, rev­enue growth sur­passed ex­pense growth, ac­cord­ing to the re­port from Moody’s In­vestors Ser­vice. Me­dian rev­enue growth for healthcare providers rated by Moody’s was 5.2% in 2014, while ex­penses grew at a slower 4.6%. The re­port from Stan­dard & Poor’s found that op­er­at­ing mar­gins in­creased to 2.7% in 2014 com­pared with the prior year’s 2.1%. Mar­gins were higher for health sys­tems, at 2.9%, than stand-alone hos­pi­tals, at 2.4%. S&P an­a­lysts said they ex­pect the trend to con­tinue through 2015.

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