Report Indicates Declines in Hospital Operating Margins

The Minnesota Hospital Association released its annual report Dec. 19 examining the financial health of Minnesota’s hospitals and health systems, and found that the state’s hospitals’ operating margins declined in 2016.

Since 2012, the overall median hospital operating margin in Minnesota declined from 2.4 percent in 2015 to 1.7 percent in 2016. 

While 43 of Minnesota's general acute-care hospitals or health systems generated positive operating margins in 2016, 28 others, or 39 percent, experienced negative operating margins. The number of hospitals with negative operating margins increased from 21 in 2015.

The median operating margin for urban hospitals was 3 percent, down from 3.6 percent in 2015. For rural hospitals, the median operating margin was 1.1 percent, down from 2.2 percent in 2015.

Click here for the full report.