Pennsylvania Hospitals See Income Decline for Second Year

Total margins realized by Pennsylvania's general acute-care hospitals declined to 2.08 percent in fiscal 2009 from 4.7 percent in fiscal 2008, according to a news release from the Pennsylvania Health Care Cost Containment Council.

Most of the $865 million drop in hospitals' net income came from a $764 million decline in non-operating income, derived primarily from investments in stocks, bonds, securities endowments and charitable contributions, according to the release.

Statewide operating income dropped from $1.33 billion in fiscal 2008 to $1.23 billion in fiscal 2009, leading to a decline in statewide average operating margin to 3.52 percent. The number of Pennsylvania hospitals with a negative operating margin increased from 55 in fiscal 2008 to 57 in fiscal 2009. Of these, 75 percent were smaller hospitals with less than $150 million in net patient revenue, according to the release.

Read the Pennsylvania Health Care Cost Containment Council news release on Pennsylvania hospital finances.