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Hospital operating margins dipped again in February to -1.1% and continue to remain negative, though with less month-to-month variation, according to the on hospital finances from Kaufman Hall. Costs of goods and services are now increasing faster than labor, with both labor and non-labor expenses per adjusted discharge 21% higher than in February 2020. 

“Due to external economic factors, relatively flat margins are likely to continue in the near term,” the report states.