Skip to main content
> Truven Health Analytics > Drivers of Operating Margin

Drivers of Operating Margin

White Paper Published By: Truven Health Analytics
Truven Health Analytics
Published:  Apr 01, 2015
Type:  White Paper
Length:  2 pages

Some factors commonly used to explain poor operating performance do not prevent many hospitals from being highly profitable. For example, Truven Health AnalyticsTM has found that rates of uncompensated care, drug expense, and other factors do not seem to differ between unprofitable and very profitable hospitals. But factors such as Medicaid utilization rates and poor reimbursement rates do appear to impact the least profitable hospitals. One controllable factor that appears to be significant is labor productivity, with the most profitable hospitals posting the lowest labor expense per patient.