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Your guide to sustainable margins

    Meet Antares Health System

    • 5 hospitals
    • 6,400 employees
    • 1B operating revenue
    • 820 beds
    • $970M operating expenses
    • 3% operating margin

    Zooming in on the Antares Moment

    Antares Health System is Advisory Board’s financial model of an average health system, developed to illustrate the magnitude of the margin management challenge facing most hospitals and health systems.

    This model organization was named after the star Antares which, though visibly bright and luminous from afar, is burning out at a rapid pace. Similarly, many hospitals and health systems may look healthy at a first glance, but are feeling the intense margin pressure as a result of expense growth outpacing revenue growth.

    The "Antares Moment" is our depiction of a point in time when hospitals and health systems, including Antares, are at a pivotal moment. Absent intervention, Antares will have a –4.2% operating margin in 2025—but with the right strategies for cost avoidance and revenue growth, it can maintain healthy margins and happy stakeholders.

    For more than two years, we built out this model organization to illustrate the effects that different market trends and strategies would have on its financial sustainability. Read on to see what we found—and how to make it work for you.

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