A recent report from the Pennsylvania Health Care Cost Containment Council (pdf) shows that general acute-care hospitals in Pennsylvania recorded a cumulative operating margin of 6.93 percent in fiscal year 2011 — the highest margin in the past 15 years.
In FY 2010, the operating margin for all Pennsylvania acute-care hospitals was 5.26 percent. Analysts said the increase in the statewide total margin during FY 2011 was attributed to increases in both operating and non-operating income — 72 percent of the $769 million increase in the statewide net income was a $551 million jolt in operating income. Overall, net income grew from $1.92 billion in FY 2010 to $2.69 billion in FY 2011.
Additionally, fewer hospitals experienced negative operating margins in FY 2011. Thirty-three out of 165 general acute-care hospitals experienced operating margins in the red last year compared with 39 hospitals out of 162 in FY 2010.
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