Like large health systems, standalone hospitals and health systems produced strong financial metrics in fiscal year 2012, many of which improved from 2011 despite reimbursement pressures and lagging admissions.
Standard & Poor's Ratings Services released nonprofit hospital and health system median reports last week. S&P analysts said standalone providers will most likely "feel the strain on operating results" in the future "due to continued credit pressures and limits on additional cost-saving measures."
Roughly 57 percent of the S&P's standalone provider database is rated within the "AA" or "A" categories, while 34 percent are rated within the "BBB" category. Ten percent have speculative credit ratings. Hospitals with "BBB" ratings mostly saw their net patient revenues go down in 2012, though higher-rated providers generally saw an increase in revenue.
Here are 34 median statistics comparing various financial metrics at nonprofit standalone hospitals from FY 2011 to FY 2012.
Note: The following data are based on audited financial statements for 517 nonprofit standalone hospitals within S&P's database. A standalone hospital is defined as an organization with fewer than three hospitals, usually one, and has less geographic and revenue diversity than health systems.
Statement of operations
|
Category |
FY 2011 |
FY 2012 |
|
Net patient revenue |
$406.2 million |
$453.3 million |
|
EBIDA |
$49.5 million |
$53.4 million |
|
Debt burden |
3.1 percent |
3 percent |
|
EBIDA margin |
11.8 percent |
11.6 percent |
|
Operating EBIDA margin |
10.2 percent |
9.8 percent |
|
Operating margin |
2.7 percent |
2.6 percent |
|
Excess margin |
4.7 percent |
4.5 percent |
|
Maximum debt service coverage |
3.8x |
3.8x |
Balance sheet
|
Category |
FY 2011 |
FY 2012 |
|
Average age of plant |
10.4 years |
10.5 years |
|
Cushion ratio |
14.4x |
15.9x |
|
Days of cash on hand |
186.7 |
191.7 |
|
Days in accounts receivable |
48.3 |
49.9 |
|
Cash flow to total liabilities |
15.9 percent |
15.3 percent |
|
Unrestricted reserves |
$200.9 million |
$230.9 million |
|
Unrestricted reserves to long-term debt |
123.6 percent |
135.1 percent |
|
Long-term debt to capitalization |
37 percent |
36.4 percent |
|
Defined benefit pension funded status |
72.9 percent |
69 percent |
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S&P: 34 Statistics on Nonprofit Health System Medians