Hospitals Post Record Profits of $43 Billion

Community hospitals posted a record profit of $43 billion in 2007, according to a published report.

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Modern Healthcare is reporting that the $43 billion profit represents the “largest single-year jump in profit margins in at least 15 years.” Some interesting figures from the report, which covers 4,987 community hospitals:

  • Net revenue grew 6.7 percent to $626 billion in 2007, and aggregate expenses grew 5.7 percent to $583 billion.
  • Those growth rates are slower than in 2006, but expenses yet again grew more slowly than revenues, producing an overall profit margin of 6.9 percent for 2007.
  • Operating revenue grew by 7.3 percent, reach more than $600 billion for the first time.

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