Many Massachusetts community hospitals were more profitable than the state's larger, well-known academic medical centers in fiscal year 2015, according to a report by the Center for Health Information and Analysis.
The report measured the operating margin of each hospital in the state, among other financial indicators such as liquidity and solvency. Operating margin measures the difference between how much a hospital spends and how much it is paid to treat patients.
In FY 2015, only one of the state's six academic medical centers, Massachusetts General Hospital in Boston, had an operating margin above the state average of 3.2 percent, according to The Lowell Sun. Lahey Hospital and Medical Center in Burlington, classified as a teaching hospital, saw its operating margin drop from 8.1 percent in FY 2014 to 3.7 percent in FY 2015.
Some community hospitals showed marked improvement compared to their FY 2014 performance. HeywoodHospital in Gardener upped its operating margin from 2.4 percent in FY 2014 to 4.8 percent in FY 2015 and LowellGeneralHospital grew its margin from 1.5 percent to 3.2 percent during that time period.
Community hospitals' stronger financial performance in FY 2015 may reflect a shifting attitude in the public about the relative supremacy of academic and teaching hospitals compared to community hospitals, as more patients seek cheaper care at smaller organizations, the director of NortheasternUniversity's Center for Health Policy and Healthcare Research told The Lowell Sun.