Financial Analysis 2018 – Volume Three – News Release

Contact: Joe Martin
717-232-6787 or

NON-GENERAL ACUTE CARE HOSPITALS EXPERIENCED MIXED FINANCIAL MARGINS IN 2018

Harrisburg, PA – November 13, 2019 – Statewide operating and total margins experienced by Pennsylvania non-general acute care hospitals (non-GAC) during fiscal year 2018 (FY18) 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 FY18 ranged from a negative 2.55% at psychiatric hospitals to 11.67% at rehabilitation hospitals. The foregone dollar value for Pennsylvania non-GAC hospital’s uncompensated care decreased 15.19%, or $2.7 million, from $17.5 million during FY17 to $14.8 million during FY18.

“Pennsylvania’s non-general acute care hospitals play a vital role in the commonwealth’s health care system and it is important both to health care and the state’s economy that they remain viable,” said Joe Martin, executive director of PHC4.

Report highlights:

• During FY18, the operating margin for rehabilitation hospitals was 8.49%, psychiatric hospitals was -0.74%, long-term acute care hospitals was -2.62%, and specialty hospitals was 6.97%.
• During FY18, the total margin for rehabilitation hospitals was 11.67%, psychiatric hospitals was -2.55%, long-term acute care hospitals was -2.23%, and specialty hospitals was 8.99%.
• As a group, the foregone dollar value of uncompensated care for non-GAC hospitals decreased 15.19%, or $2.7 million, from $17.5 million during FY17 to $14.8 million during FY18. Uncom¬pensated care as a percent of net patient revenue in FY18 among the non-GAC hospitals ranged from 0.31% at long-term acute care hospitals to 1.20% at specialty hospitals.
• Non-GAC hospitals in Pennsylvania treated 6.15% of the patients that received inpatient care during FY18. GAC hospitals cared for 93.85% of the patients that received inpatient care.
• Non-GAC hospitals treated 5.76% of the statewide outpatient visits during FY18. The remaining 94.24% of the statewide outpatient visits were cared for at GAC hospitals.
• Non-GAC hospitals treated 5.76% of the statewide outpatient visits during FY18. The remaining 94.24% of the statewide outpatient visits were cared for at GAC hospitals.

This is the third volume of a three-volume series of Financial Analysis 2018 reports. Volume One, which was released in May 2019, focused on the financial health of Pennsylvania’s general acute care (GAC) hospitals. Volume Two, released in October 2019, 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 2018, Volumes One, Two, and Three are available from PHC4’s website at www.phc4.org.