In 2011, Denver-area hospitals posted $774.6 million of pre-tax net income, which was a 12.3 percent profit margin on $6.27 billion of net patient revenue.
HealthONE, part of Nashville, Tenn.-based Hospital Corporation of America, is by far the most profitable system in Denver, recording $428.5 million in 2011 and controlling almost 32 percent of its market. Hospitals within Exempla Healthcare and Englewood, Colo.-based Centura Health also recorded high profit margins, according to the report.
Despite the high profits, hospitals’ inpatient beds have had lower occupancy rates. In 2011, inpatient occupancy averaged 65.8 percent for Denver-area hospitals compared with 69.2 percent in 2008. Mr. Baumgarten attributed the decline to patients deferring care and the healthcare system’s gradual transition to value-based care from fee-for-service.
Colorado’s health insurers have also had healthy bottom lines. In 2012, Colorado’s HMOs recorded $178.3 million of profit after tax, and their profit margins have not dipped under 3 percent in the past five years.
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