AHA: Community hospital profits rose by 50% in 2010

Survey finds that hospital spending also rose by 3.3%

Topics: Budgeting, Finance, Benefits, Labor Expense, Cost Management, Margin Performance

January 6, 2012

U.S. community hospitals reported more than $50 billion in total profits in 2010, up more than 50% from 2009, according to the 2012 American Hospital Association (AHA) Hospital Statistics guide.

For the guide—which was released on Thursday—AHA surveyed its 4,985 members, finding that hospitals posted $52.9 billion in total profits in 2010, up from $34.4 billion in 2009. Overall, community hospitals in 2010 posted $730.9 billion in net revenues, up from $690.5 billion in 2009. According to the guide, community hospital spending also rose in 2010, increasing by 3.3% to reach $678 billion.

Meanwhile, community hospital operating revenues—which many hospital officials consider a better measure of financial strength—increased to $717.7 billion in 2010, generating $39.7 billion in operating profits. In comparison, hospitals' 2009 operating revenues were $686 billion and operating profits were $29.9 billion.

The statistics guide also found that community hospital payroll and benefits costs increased from $338 billion in 2009 to $348.1 billion in 2010. However, the percentage of community hospital budgets dedicated to payroll and benefits remained steady at about 51% (Selvam, Modern Healthcare, 1/5 [subscription required).

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