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Monday, December 8, 2014
CT hospitals made $597 million profit last year
A new analysis of CT’s 29 acute care hospital finances by C-HIT found that while operating profits were down last year to $333.6 million from $513.6 m last year, overall profits were still $597 million due to an increase in investment and other income. The annual OHCA report found that just under half (48%) of total CT hospital revenue was from public sources – Medicaid and Medicare. At 3.15% CT hospitals’ average operating profit margin was above margins for many other US industries such as continuing care/assisted living facilities (-1.0%), electronics/appliance stores (1.5%), highway/street/bridge construction (2.2%) and groceries (2.3%). Non-operating margins were still higher than non-operating margin at 2.5%; combined CT hospitals achieved an aggregate 5.64% profit last year. Five of CT’s 29 acute care hospitals lost money last year, while 10 reported higher profits than the year before. Three of the five with negative margins are part of larger networks. Of note is Windham Hospital’s performance, losing money for the last five years despite their affiliation with Hartford Health Care Corp., while the hospital achieved profits for each of the four years preceding that affiliation.