USC Price School of Public Policy

Why do Los Angeles County Hospitals Continue to Lose Money?

During a time when most California hospitals succeeded in converting their negative operating margins to positive ones by 2005, Los Angeles County hospitals continue to face a negative median operating margin. This reality stands in contrast to nearby Orange County and San Diego County hospitals, which have a small yet positive margin (about 1 percent). This study, conducted by Prof. Vivan Wu and funded by the John Randolph Haynes Foundation, will attempt to address this paradox.