U.S. Hospital Profits Fall as Labor Costs Grow and Patient Mix Shifts


One important measure of U.S. hospital profits last year reached a low not seen in the past decade, as a tight labor market and other factors pressure hospital finances.

The median hospital operating cash flow margin—monitored by Moody’s Investors Service as a signal of financial strength—fell to 8.1% last year from 9.5% a year earlier, in a preliminary analysis of 160 nonprofit and public hospitals with credit ratings from the agency, a Moody’s report said.

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