Financial Analysis 2019 – Volume Three – News Release

Contact: Joe Martin
717-232-6787 or

NON-GENERAL ACUTE CARE HOSPITALS EXPERIENCED MIXED FINANCIAL MARGINS IN 2019

Harrisburg, PA – December 16, 2020 – Statewide operating and total margins experienced by Pennsylvania non-general acute care hospitals (non-GAC) during fiscal year 2019 (FY19) were mixed according to a new report released today by the Pennsylvania Health Care Cost Containment Council (PHC4). Non-GAC hospitals include rehabilitation hospitals, psychiatric hospitals, long-term acute care hospitals, and specialty hospitals.

Statewide total margins experienced by each facility type during FY19 ranged from 0.66% at psychiatric hospitals to 6.17% at rehabilitation hospitals. The foregone dollar value for Pennsylvania non-GAC hospital’s uncompensated care increased 11.25%, or $1.7 million, from $14.8 million during FY18 to $16.5 million in FY19.

“It’s important to note that the numbers included in this report do not include the estimated financial impact of the COVID-19 pandemic. The hospitals featured in this report play a vital role in Pennsylvania’s overall health care system.” said Joe Martin, executive director of PHC4.

Report highlights:

• During FY19, the operating margin for rehabilitation hospitals was 6.64%, psychiatric hospitals was 2.19%, long-term acute care hospitals was 1.80%, and specialty hospitals was -0.28%.
• During FY19, the total margin for rehabilitation hospitals was 6.17%, psychiatric hospitals was 0.66%, long-term acute care hospitals was 1.92%, and specialty hospitals was 2.34%.
• As a group, the foregone dollar value of uncompensated care for non-GAC hospitals increased 11.25%, or $1.7 million, from $14.8 million during FY18 to $16.5 million during FY19. Uncom¬pensated care as a percent of net patient revenue in FY19 among the non-GAC hospitals ranged from 0.86% at rehabilitation hospitals to 1.68% at specialty hospitals.
• Non-GAC hospitals in Pennsylvania treated 6.06% of the patients that received inpatient care during FY19. GAC hospitals cared for 93.94% of the patients that received inpatient care.
• Non-GAC hospitals treated 5.94% of the statewide outpatient visits during FY19. The remaining 94.06% of the statewide outpatient visits were cared for at GAC hospitals.
• The average revenue per discharge during FY19 ranged from $10,349 at specialty hospitals to $50,719 at long-term acute care hospitals.

This is the third volume of a three-volume series of Financial Analysis 2019 reports. Volume One, which was released in April 2020, focused on the financial health of Pennsylvania’s general acute care (GAC) hospitals. Volume Two, released in October 2020, concentrated on Pennsylvania’s ambulatory surgery centers (ASCs). Volume Three focuses on Pennsylvania’s non-GAC hospitals, which include rehabilitation hospitals, psychiatric hospitals, long-term acute care hospitals, and specialty hospitals.

PHC4 is an independent state agency charged with collecting, analyzing and reporting information that can be used to improve the quality and restrain the cost of health care in Pennsylvania. Copies of Financial Analysis 2019, Volumes One, Two, and Three are available from PHC4’s website at www.phc4.org.