HSA 525 DISCUSSION

The operating margin-Hospital Council of Western Pennsylvania

The operating margin at 58 hospitals in the region fell during the 12 months ending June 30 as expenses inched up, reflecting shrinking government reimbursement and other factors, theHospital Council of Western Pennsylvaniareported Friday.

Overall, the hospitals' operating margin fell to percent from percent while expenses rose 3.3 percent, according to a report by the Warrendale-based trade group. The decline was blamed on retroactive reductions in a reimbursement metric used by Medicaid and the continuing categorization of patients as observational rather than an admission, eroding hospital reimbursement.

"We continue to be concerned about the declining operating margins of the...