🔒CT hospitals reported nearly $1.5B surplus in 2021 as revenues rebounded

Hospital revenues rebounded during the 2021 fiscal year, with Connecticut hospitals generating $337.4 million in additional patient revenue compared to a year earlier, an increase of 725% from pandemic-marred 2020, according to a report from the Connecticut Office of Health Strategy. 

Hospitals statewide saw total operating revenue of $14.93 billion, along with total expenses of $14.59 billion, netting $337.39 million in income from operations.

In addition, hospitals saw $1.14 billion in non-operating revenue — from sources unrelated to patient care — netting $1.48 billion in margin.

That was a 251% increase from the $324.6 million earned in FY 2020, due largely to increases in the financial markets.

Overall hospital operating expenses rose 6.9% to $14.6 billion from the 2020 fiscal year, following increases in supplies (21%) and drugs (15%).

Twenty of the state’s 27 hospitals, or 74%, achieved a positive total margin in 2021, which means their operating gains or losses plus non-operating revenue exceeded their costs.

Yale New Haven Hospital had the highest gain ($484.3 million) followed by Hartford Hospital ($183.7 million), while UConn John Dempsey Hospital in Farmington and St. Vincent's Medical Center in Bridgeport had the most significant losses, at $151.6 million and $21.4 million, respectively.

Seven hospitals had a negative total margin in 2021, a decrease from nine the previous year.

Bristol Hospital, UConn John Dempsey Hospital, Rockville General Hospital and Sharon Hospital had negative five-year average total margins from FY 2017 to FY 2021, according to the report.

Rockville General Hospital has had negative total margins for the last five years, while Bristol and Sharon hospitals had a negative margin in four of the last five years.

Four hospitals — Backus Hospital in Norwich, Day Kimball Hospital in Putnam, Charlotte Hungerford Hospital in Torrington and Yale New Haven improved their total margins by more than 10% in 2021.

The 2021 fiscal year ran from Oct. 1, 2020 to Sept. 30, 2021.

Click here to view the full report.