Total hospital margins for community hospitals have fluctuated over the past 20 years. They increased from the early to the mid-1980s (from 3.6% in 1980 to 6.0% in 1985), dropped to 3.9% in 1990, then rose to 6.7% in 1996 and 1997, dropped to 4.2% in 2001, and rose to 4.4% in 2002.

Notes: Total Community Hospital Margin calculated as the difference between total net revenue and total expenses, divided by total net revenue.

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 1980-2002, for community hospitals, from American Hospital Association/The Lewin Group, TrendWatch Chartbook 2003, Table 4.1, p. 96 at http://www.hospitalconnect.com/ahapolicyforum/trendwatch/chartbook2004.html.