U.S. hospitals and physician practices saw growth in patient volumes and revenues in October, but high costs continue to pressure overall financial performance. Key trends for the month include: 

  • The median hospital operating margin staggered, with the metric holding flat from the prior month, continuing unsteady performance since rising out of the red eight months ago. 

  • Demand for outpatient care continued to grow, as hospitals saw double-digit growth in outpatient revenue compared to October 2022. 

  • Hospital supply and drug expenses saw sizable increases as factors such as inflation and higher patient volumes contributed to ongoing expense pressures for hospitals nationwide. 

  • Patient demand increased for both hospitals and physician practices driving higher physician productivity and higher hospital patient volumes following weak volumes in September. 

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