Hospital profitability isn’t just about operations anymore. While operating margins remain stable, systems with large investment portfolios are seeing net income margins soar. The result is a growing divide between cash-rich systems and those with limited liquidity.
S&P Global's widely used hospital financial ratios may provide less meaningful benchmarking than healthcare executives realize, with inconsistent business models and fluctuating peer groups. Hospital executives seeking operational benchmarks may benefit from tools designed specifically for strategic planning, with peer groups that reflect similar business models rather than credit rating categories.