Pennsylvania hospitals saw operating income dip 4% in FY 2018, state report finds

Kelly Gooch -

Pennsylvania general acute care hospitals collectively saw operating income decrease year over year in fiscal year 2018, according to a new report from the Pennsylvania Health Care Cost Containment Council.

For the report, researchers examined financial statements of 168 hospitals, supplemented by data supplied by each facility. The data was for fiscal year 2018. For most hospitals, that began on July 1, 2017 and ended June 30, 2018, although some facilities have fiscal years that go from Oct. 1 to Sept. 30 or Jan. 1 to Dec. 31.

Six takeaways:

1. Pennsylvania general acute care hospitals' net patient revenue was $45.3 billion during fiscal year 2018, up 3.9 percent from the year prior.

2. Statewide, the number of days the average medical bill stayed in accounts receivable climbed from 45 in fiscal year 2017 to 46 in fiscal year 2018.

3. Pennsylvania general acute care hospitals' operating income dropped year over year from $2.4 billion to $2.3 billion.

4. Due to the drop in operating income, the statewide average operating margin decreased from 5.15 percent in fiscal year 2017 to 4.76 percent in fiscal year 2018.

5. Pennsylvania general acute care hospitals' total operating revenue was $48 billion in fiscal year 2018, while operating expenses during that period were $45.7 billion.

6. Statewide, the total margin realized by general acute care hospitals dipped from 6.67 percent in fiscal year 2017 to 6.62 percent in fiscal year 2018.

 

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