The latest Quarterly Services Survey (QSS) showed a dramatic turnaround in hospitals’ fortunes. Quarterly revenues dropped two percent from the 2nd quarter, while offices of physicians and home health services grew over three percent (see Table I). Hospital revenue grew only 5.3 percent from 2014 Q3 to 2015 Q3, but that was still significantly lower than growth for most other health services.
In the previous QSS, I discussed the healthy rise in hospital margins. That has changed dramatically. The Q3 data is subject to revision. Nevertheless, it indicates a dramatic change in hospitals’ fortunes (see Table 2).