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Government Affairs Home > Washington Highlights > May 3, 2002

CMS Issues Hospital Financial Report

May 3, 2002- On April 29 the Centers for Medicare and Medicaid Services (CMS) released a report on its views on the financial and market performance of acute care hospitals ("Health Care Industry Market Update: Acute Care Hospitals"). The report focuses in large part on Wall Street investors' views of the financial performance of hospitals. This view reflects a hospital industry that is showing "signs of recovery and stabilization, but continued cost pressures loom on the horizon." The report also states that nonprofit hospitals are recovering from the poor performance of the 90s at differing rates but that current hospital profit margins are near the historical average.

Information:

Karen Fisher, Senior Associate Vice President
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

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