Hospitals’ median operating margin fell 11.8% from January to February as healthcare providers dealt with lower inpatient and outpatient volumes, higher resource costs and the impact of a surge in omicron.

COVID-19 cases and hospitalizations fell in February as nationwide labor shortage and Supply Chain Challengesaccording to healthcare consulting firm Kaufman Hall, monthly report Financials of more than 900 primarily nonprofit hospitals.

“2022 is off to a rough start for our nation’s hospitals and health systems,” Erik Swanson, senior vice president of data and analytics at Kaufman Hall, said in a news release. Hospitalizations are all down, while outpatient care shows only slow returns. These metrics suggest that the recovery from the omicron surge will be challenging in the coming months.”

The median operating margin index for hospitals was -3.45% in February, up from -4.52% in January, Kaufman Hall found. While the health system is closer to breaking out of the red, it’s still below sustainable operating margins.

From January to February, the hospital’s total operating income fell by 7.4%, outpatient income fell by 5%, and inpatient income fell by 19.3%.

Average weekly new enrollments fell 79 percent from a peak of 21,622 on January 15 to 4,515 on February 28.While these low volumes result in lost revenue, influx of patients During omicron.

On a month-on-month basis, the hospital’s total cost per adjusted discharge decreased by 4.5%, especially the labor cost per adjusted discharge decreased by 6.1%.

However, labor costs adjusted for emissions rose 15.3% last month compared to February 2021, as wage competition drove overall labor costs up year-over-year.

Despite a drop in outpatient revenue, surgeries rose slightly as patients returned due to delayed surgeries following the latest surge. From January to February, operating room minutes increased 6.5% month-over-month.

As the number of COVID-19 cases and hospitalizations declined in February, the number of patients with high acuity decreased, and the average length of stay in hospital decreased by 5.3% month-on-month.

Costs related to staff shortages, delays in the resumption of ambulatory visits and elective services, and the struggle to reduce overall profit margins have been recurring themes across the border earlier reports As hospitals continue to feel the pandemic stifling their business.

Compared to February 2020 pre-pandemic levels, the median change in hospital operating margins decreased by 42.4% month-over-month.