Operating Profit at Connecticut Hospitals Down Significantly in 2013

In fiscal year 2013, operating income at Connecticut hospitals cumulatively fell by $175 million, which forced hospitals to make many layoffs, according to the Connecticut Hospital Association.

The CHA attributed the decreased profit to massive state budget cuts, a hospital tax that began last July and Medicare cuts (including sequestration).

Losing $175 million in operating income brought the state's average hospital operating margin down to 3.3 percent, compared with 4.9 percent in 2012.

In 2013, Connecticut hospitals eliminated more than 1,400 jobs and also cut some services. Despite the downward operating trends, the association said investment and dividend income remained steady last year.

More Articles on Hospital Finance:
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MultiCare Sells Revenue Cycle Consulting Firm
Report: Connecticut Hospitals Invested $1.2B in Community Benefit in 2012

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