Hospitals in New Haven and Middlesex counties performed better financially in 2016 than they did the year before, with all but one care provider posting improved margins for the fiscal year, according to the latest report by the state Office of Health Care Access.
Across the two counties, all but Waterbury Hospital ended the year in the black, with Milford Hospital reporting its first positive total margin in eight fiscal years, at 1.1 percent, the report found.
Milford Hospital took in $750,000 more than it spent in 2016, posting a $650,000 gain from operations and $100,000 in non-operating revenue.
Meanwhile, Waterbury Hospital suffered an overall loss of $16.5 million, according to the report. The hospital, which has been losing money for years, was sold in Oct. 2016 to Prospect Medical Holdings, a for-profit chain in California.
The region’s largest hospital, Yale New Haven, took in $160.4 million more than it spent, reporting $86 million in operating revenue and $74.4 million in non-operating gain, the report said.
Statewide, the report found 20 of 28 hospitals achieved a positive total margin in fiscal year 2016, up from 17 the previous year.
In New Haven and Middlesex counties, MidState Medical Center in Meriden posted the highest total margin, at 12.21 percent, while St. Mary’s in Waterbury (10.97 percent), Griffin in Derby (9.51 percent) and Middlesex in Middletown (9.16 percent) all posted total margins above the statewide average of 7.32 percent. Yale’s total margin was 5.85 percent while Waterbury’s was -7.60 percent.
Although statewide the hospitals’ income from operations decreased by 18 percent in 2016, a spike in non-operating income — which comes primarily from investments, the value of held securities, endowments and charitable contributions – helped to more than double the industry’s combined bottom line to $864 million, the report said.
“While non-operating income is helpful to hospitals during times of decreased operating revenue, it may be considered risky to expect these gains to continue indefinitely,” the report said.
Natalie Missakian can be reached at news@newhavenbiz.com
