Nonprofit hospital expenses outpaced revenue in FY12

Nonprofit hospitals had a strong balance sheet in fiscal year 2012, but profitability metrics were down compared with FY 2011, according to the Moody’s Investors Service annual medians report. For the first time since FY 2008, Moody’s found expenses outpaced revenue in nonprofit hospitals and health systems. Overall, median operating revenue growth dropped from 5.4% in 2011 to 5.2% in 2012. Net patient revenue growth dropped to 4.7%, more than a half-percent lower than 2011.