How much profit does a not-for profit hospital need to make?

This is a question I get all the time. Especially from suppliers that feel leveraged and commoditized. I think it is a fair question to a certain extent.

There have been many headlines in the news the last few weeks pointing to how well IDNs are performing. Geez, with the Dow sniffing 25,000, who isn’t doing well?

Check out this report from Axios. They studied the top 84 systems that comprised $535b in revenue and found they averaged a 2.7% operating margin or $14b in earnings in aggregate.

It’s interesting to see the AMA’s response is that the IDNs are benefiting from good investments.

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