Stern Fiscal Management Triggers Hospital Performance

A report published by Moody's Investors Service has claimed that non-profit hospitals fared margins and liquidity in 2009. However, the figures still reflects a deteriorating state of these facilities, underlined a report by the HFMA.

The Service’s reports also highlighted the median financial performance recorded for over 400 hospitals and health systems that function in one state with a credit rating from the agency.

In fiscal year 2009, most of the non-profit hospitals have recorded significant improvements in all major ratios and all important categories compared to fiscal year 2008.

However, the hospitals recorded its margins and liquidity to remain suppressed compared to the figures recorded in 2005, revealed the report.

Hospitals and other healthcare systems across the region were witnessed to keep a stern control on their expenditure with the introduction of cuts on salaries and benefits. The controls consequently presented its fruitful results in March by raising its margins and cash reserves.

The median profit recorded for 401 hospitals and single-state systems included in the survey, was $9.6 million in 2009, while, the median operating margin stood at 2.3%. However, the figures for the preceding year were $6.5 million and 1.8% for medians for profit and operating margin, respectively.