Hospital margins are beginning to stabilize, with razor-thin margins likely becoming the new normal in the near future, according to Kaufman Hall’s latest National Flash Hospital Report. Based on data from more than 900 hospitals, the report found that hospitals’ median operating margins in February went down slightly at -1.1% from the previous month. Outpatient care is driving revenues, as patients continued to seek care away from inpatient settings due to the pandemic. Meanwhile, inflation and pricing pressures are leading to significant cost growth in supplies and services. Labor expenses, which shot up over the last three years, appeared to be holding steady.