Healthcare In Crisis: 32 Philadelphia-area hospitals made money; 13 lost

Thursday, June 12, 2008

32 Philadelphia-area hospitals made money; 13 lost

Philadelphia Business Journal - by John George

While Pennsylvania hospital margins continued to improve in fiscal 2007, one out of four general acute-care hospitals in the state lost money, according to a report released Thursday by the Pennsylvania Health Care Cost Containment Council.

Among the 45 Philadelphia-area hospitals listed in the financial performance report, 32 finished the year in the black and 13 lost money.

The Hospital of the University of Pennsylvania posted the largest profit, by a large margin, at $269.2 million.

Next were Thomas Jefferson University Hospital, at $59.8 million; Paoli Memorial, at $51.9 million, and Bryn Mawr Hospital at $46 million.

Both Paoli and Bryn Mawr are part of Main Line Health based in Radnor, Pa.

The largest deficits were recorded by three Philadelphia hospitals: Hahnemann University Hospital, at $40.4 million; Graduate Hospital, at $29.9 million, and Temple Children's Hospital, at $13 million...

PHC4 said the overall total margin (the ratio of total income to expenses) for the 170 hospitals in the report increased to 6.51 percent in fiscal 2007 from 5.39 percent in fiscal 2006. The report also found the amount of uncompensated care hospitals provided increased to $678 million last year, up 12.2 percent from $604 million in 2006.

"The financial health of Pennsylvania hospitals continues to improve," said David H. Wilderman, acting-executive director of PHC4. "It is important to note, however, that 25 percent lost money overall. That number has not improved since 2006 and is comprised of mainly small-to-medium-sized hospitals, many of which serve rural communities..."

"Nevertheless," Koutsouradis said, "a third of this region's hospitals lost money on patient care and had to try to make up the difference through other income and investments, a strategy that is particularly unreliable right now, with Wall Street's volatility."

(full article)

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