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A hospital owned by Sentara Healthcare. Photo: John Greim/LightRocket via Getty Images

Not-for-profit hospital systems are starting to disclose second-quarter financial documents, and the industry's dominant players are having no problem making money.

The bottom line: The number of people staying overnight in a hospital isn't really going up, but that has not affected the profitability of hospital systems — especially those with a lot of brand and market power.

By the numbers: Axios reviewed the financial statements of 16 not-for-profit hospital systems that operate on a calendar fiscal year and hold a lot of power in their regional markets. All of the documents were disclosed within the past week.

  • Similar to the first quarter, most systems posted lower overall surpluses in the first six months of this year because their Wall Street investments have performed worse in 2018 than they did during the booming market of 2017.
  • However, hospital operating margins — which reflect the money that hospitals keep after paying their employees and after paying for routine expenses like drugs and medical equipment — held steady at around 4%.
  • Operating margins were higher, year over year, for more than half of the systems.
  • Sentara Healthcare, which owns hospitals and a health plan in Virginia, had the highest operating margin at 9.1%.

Between the lines: In return for huge tax breaks, not-for-profit hospitals are supposed to reinvest their surplus money into the community. However, that often takes the shape of new buildings and other high-cost projects with the intent of increasing revenue.

  • One example: "The increase in revenue from surgical ventures was attributable to the addition of five new surgical centers in the latter half of 2017 and an additional center in May 2018," executives at RWJ Barnabas Health, a system in New Jersey that was created through mergers, said in a report to bondholders last week.

Reality check: The consolidating industry has given big systems even more power to charge commercial health insurers what they want, and American hospitals' fixed costs are unusually high.

  • However, within the entire health care sector, pharmaceutical companies remain the most profitable, on average.

Go deeper

Mark Meadows will stop cooperating with Jan. 6 panel, attorney says

Photo: Chris Kleponis/Polaris/Bloomberg via Getty Images

Former White House chief of staff Mark Meadows will no longer cooperate with the House select committee investigating the Jan. 6 Capitol insurrection, his attorney told Fox News Tuesday.

Why it matters: Meadows, who failed to appear before the panel last month, is believed to have insight into former President Trump's role in efforts to stop the certification of President Biden's election win.

Updated 4 hours ago - Economy & Business

The billionaire balloon

Data: World Inequality Report 2022; Chart: Axios Visuals

The super-rich are getting stupid rich: New data out today shows the share of global wealth held by the richest slice of humanity swelled by almost a full percentage point during the pandemic.

Driving the news: The top 0.01% of individuals now hold about 11% of the world's wealth, compared to just over 10% in 2020, according to the "World Inequality Report 2022," written by Lucas Chancel, Thomas Piketty, Emmanuel Saez and Gabriel Zucman.

Tina Reed, author of Vitals
4 hours ago - Health

Omicron gives a shot to boosters

Expand chart
Data: CDC; Chart: Will Chase/Axios

Vaccination rates have ticked higher since the discovery of the Omicron variant, CDC data shows.

By the numbers: The seven-day average for vaccinations in the U.S. reached about 1.8 million on Monday, up from an average of about 1.3 million a month ago.