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Patient care is getting more expensive for many hospitals

  • ​​​In 2016, not-for-profit hospitals experienced a 10% decline in operating margin growth. Squeezing hospital operating margins are costs associated with increased headcounts, investments in clinical innovation and population health initiatives. According to Moody’s Investors Service, expenses for nonprofit hospitals grew by 7.75 percent from 2015 to 2016 while revenue grew by 6.0 percent.
  • At the same time, several trends are challenging revenue growth including decreasing Medicare per-capita spending. Between 2010 and 2016, average annual revenue growth increased 1.3 percent—significantly lower than the 7.4 percent annual average between 2000 and 2010. ​

Source: JLL Research, Moody's Healthcare Outlook December 2017​

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