UHS - Hospital operating margins improve but are still thin - report

Hospital operating margins are back in the black after the COVID-19 pandemic saw them decrease drastically, according to a new report from Kaufman Hall.Without financial help through the CARES Act that has disbursed $178B to hospitals and other frontline healthcare providers, hospitals would have experienced negative operating margins from May 2020 through February of this year.Excluding CARES aid, the median Kaufman Hall hospital Operating Margin Index was 2.4% last month. Including the funding, it was 3.3%.The median operating EBITDA margin was 7.1% without CARES, and 8.1% with.As of April, gross operating revenue excluding CARES is up 16.7% year-to-date and 71.8% year-over-year.Hospital stocks in afternoon trading: Community Health Systems (CYH) -0.8%; HCA Healthcare (HCA) +2.4%; Tenet Healthcare (THC) +0.3%; and Universal Health Services (UHS) +0.5%.

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Hospital operating margins improve, but are still thin - report