Healthcare Fiscal Performance

 


Dr. Emrick's Books, Blogs, and Podcasts

Healthcare Financial Performance (March 2024 to March 2025)

Hospital Financial Performance: year-over-year changes for March 2024–March 2025. The tables below contrast improving hospital revenues/margins against rising costs. For example, the median hospital operating margin rose by +2.1% year-over-year, total expenses jumped by +7.4%, and non-labor costs surged by +9.1%. Gross outpatient revenue grew by +10.0 over the same period. The visual highlights that costs increase faster than margins and revenue, underscoring mounting cost pressures even as revenues improve.


Physician Practice Metrics: Year-over-Year Changes (Q1 2024 to Q1 2025)

Physician practice metrics: year-over-year changes for Q1 2024–Q1 2025. The table below compares practice investment and productivity to per-physician costs. Median investment per physician FTE grew only +0.2% year-over-year, whereas total expense per physician FTE jumped +10.3%. Physician productivity (measured by wRVUs per FTE) rose by just +3.3%. The data shows expense growth far outpacing both productivity gains and modest investment increases, indicating increasing financial pressure on physician practices.


 Source Data: https://www.stratadecision.com/

Comments