Similar to 2011, financial results varied widely among community hospitals this year, as 23 percent said they had negative operating margins while 29 percent reported operating margins higher than 4 percent, according to the second annual Community Hospital Survey from Community Hospital 100 and Anthelio (pdf).
The two healthcare organizations surveyed a total of 71 community hospitals, most of which were independent and could not have more than 300 licensed beds. Here are some major results of their survey:
• Twenty-nine percent of community hospitals had operating margins above 4 percent, while 23 percent were in the red and 13 percent had operating margins lower than 1 percent. More broadly, 53 percent of community hospitals had operating margins of 2 percent or higher, while 47 percent had operating margins below 2 percent.
• There was continued disparity when it came to days cash on hand: two-third of respondents said they had more than 80 DCOH, while 13 percent reported having less than 50 DCOH.
• Fifty-three percent of community hospitals said operating costs have increased by more than 5 percent over the past three years.
• Seven percent of surveyed community hospitals said they endured more than $10 million in cuts from Medicare and Medicaid this year. Sixty percent said Medicare and Medicaid cuts totaled $2.9 million or less.
• Thirty-eight percent of community hospitals have fully implemented their electronic health record systems, while 61 percent said they have acquired them and started their EHR project but are not quite finished.
• Forty-one percent of community hospitals said their EHR costs (including acquisition and implementation costs) were more than $8 million.
• Of the 76 percent of respondents that are independent organizations, 59 percent said they plan to remain independent long term, while 41 percent will consider consolidation with a health system.
The two healthcare organizations surveyed a total of 71 community hospitals, most of which were independent and could not have more than 300 licensed beds. Here are some major results of their survey:
• Twenty-nine percent of community hospitals had operating margins above 4 percent, while 23 percent were in the red and 13 percent had operating margins lower than 1 percent. More broadly, 53 percent of community hospitals had operating margins of 2 percent or higher, while 47 percent had operating margins below 2 percent.
• There was continued disparity when it came to days cash on hand: two-third of respondents said they had more than 80 DCOH, while 13 percent reported having less than 50 DCOH.
• Fifty-three percent of community hospitals said operating costs have increased by more than 5 percent over the past three years.
• Seven percent of surveyed community hospitals said they endured more than $10 million in cuts from Medicare and Medicaid this year. Sixty percent said Medicare and Medicaid cuts totaled $2.9 million or less.
• Thirty-eight percent of community hospitals have fully implemented their electronic health record systems, while 61 percent said they have acquired them and started their EHR project but are not quite finished.
• Forty-one percent of community hospitals said their EHR costs (including acquisition and implementation costs) were more than $8 million.
• Of the 76 percent of respondents that are independent organizations, 59 percent said they plan to remain independent long term, while 41 percent will consider consolidation with a health system.
More Articles on Community Hospital Finance:
37% of Massachusetts Hospitals Lost Money in FY 2011
Physician-Led Changes: How Summa Western Reserve Hospital Went From Red to Rejuvenated
Two Sides of the Coin: The Good and the Bad of Community Hospital Finances