Fewer of Connecticut’s 28 acute-care hospitals were profitable last year, though they collectively remained in the black.
That’s according to a new report from the state Office of Health Strategy, which said 20 of 28 hospitals had a positive overall profit margin in their most recent fiscal year, down from 24 the year prior.
The average profit margin fell for the third consecutive year in a row, to 5.2%, down from 5.9% in fiscal year 2018 and from 7.3% in 2016.
In the recent fiscal year, ended Sept. 30, 2019, hospitals collectively booked a surplus of revenue over expenses of $682.6 million.
Operating revenue reached a high of $13.17 billion, up from $12.41 billion a year earlier, and operating income was also at a high of $611.9 million.
Meanwhile, non-operating revenue — such as from investment holdings or joint ventures — plummeted from $202.6 million in 2018 to $70.7 million in 2019, which OHS attributed to fluctuations in financial markets.
Bad debts (unpaid medical bills) rose to their highest level since 2016, reaching $417.2 million.
The report contains no financial impacts from COVID-19, which struck Connecticut about five months into the current fiscal year, 2020.
“The dramatic financial impact of COVID-19 mobilization, equipment procurement, patient treatment, and lost revenue will be reported a year from now, with compilation of FY20 financial data,” OHS said in a statement Wednesday.
Hospitals with negative profit margins during the recent fiscal year included:
- Milford (acquired by Yale New Haven Health during fiscal year 2019): -23.5%, or a loss of $8.7 million
- Rockville General: -17.3%, or a loss of $9.4 million
- Sharon: -15.9%, or a loss of $7.5 million
- Bristol: -12.9%, or a loss of $16.6 million
- John Dempsey (UConn Health): -11.7%, or a loss of $55.2 million
- Manchester: -5%, or a loss of $8.9 million
- Charlotte Hungerford: -1.9%, or a loss of $2.7 million
- Norwalk: -1.2%, or a loss of $4.6 million
The largest health systems in the state produced the following results:
- Yale New Haven Health: 5.2% total margin, or a profit of $254.2 million
- Hartford HealthCare: 5.1% total margin, or a profit of $181.4 million
- Trinity Health of New England: 6.6% total margin, or a profit of $105.2 million
