As Hospital Profit Margins Fall, Reprocessing Helps Lower Costs

As Hospital Profit Margins Fall, Reprocessing Helps Lower Costs

A new Wall Street Journal article is reporting on the financial pressures on the rise for U.S. hospitals due in part to increasing labor costs and a shifting patient mix. Monitored by Moody’s Investors Service as a signal of financial strength, the median cash flow margin fell to 8.1 percent last year compared to 9.5% a year earlier. The significant decrease stems from patients seeking care in non-hospital settings and increased enrollments in Medicare.

At a time in which hospitals are being forced to operate under lower profit margins, AMDR is promoting reprocessing, a financial strategy that could lower costs for hospitals when they opt in to a reprocessing program and purchase medical devices at a fraction of the cost of new devices. For the full WSJ article on the mounting financial pressures on hospitals, click here.

By | 2018-06-11T12:14:42+00:00 April 27th, 2018|Blog|0 Comments