Profit margins turned down last year at hospitals in Southeastern Pennsylvania after two years of improvement following the recession, data released Wednesday showed.
The average operating margin at 19 hospitals in Philadelphia fell to 4.59 percent in the 12 months ended last June 30 from 4.68 percent the year before, the Pennsylvania Health Care Cost Containment Council's report said.
Strong performances at the Hospital of the University of Pennsylvania and Children's Hospital of Philadelphia - the two largest hospitals in the region by total revenue - buoyed overall results in the city.
At 24 suburban hospitals, the decline was more dramatic. Operating profit, a core measure of financial performance that does not include investment income and certain other items, fell to 4.36 percent from 5.95 percent.