CT hospitals more profitable in 2007

The financial status of CT’s acute care hospitals continued to improve last year, according to OHCA’s latest report. Average margins (profits) were 3.62% of revenues in 2007, up from 2.51% in 2006. The biggest winner was Saint Vincent’s with a margin of 14.49%; Johnson lost 18.73% last year. The number of hospitals that lost money dropped from six in 2006 to five last year. Hospitals payments to cost ratios dropped from 2005 to 2007 for private pay, Medicare and Medicaid by 2, 6 and 7%, respectively. The average case mix (measure of patients’ medical complexity) continued to rise, but average length of stay is stable. The percent of discharges for patients in government programs (Medicare and Medicaid) held relatively steady at 58% in 2007. Uninsured discharges were up 14% from 2005 to 2007 while total discharges grew by only 2%. Uncompensated care rose to 3.1% of total expenses in 2007 from 2.8% in 2005, however CT’s average is still well below the national hospital average of 5.7% (2006).
Ellen Andrews