Twenty-four out of 65 acute-care hospitals in Massachusetts, or 37 percent, reported total margin losses in fiscal year 2011 — an increase from the 16 hospitals (24.6 percent) that lost money in FY 2010, according to a report from the Massachusetts Division of Health Care and Finance Policy (pdf).
Urban safety-net hospitals and community hospitals were the most common groups that lost money last year. Overall, the median total margin for Massachusetts hospitals decreased from 2.6 percent in FY 2010 to 2.1 percent in FY 2011. Here are other major findings from the report:
• Hospitals in the state's southeast region recorded the highest cumulative margin at 5 percent, while those in the northeast region posted a cumulative 0.4 percent margin, the lowest of any region.
• Teaching hospitals had higher profitability than community hospitals in each of the past five years, although both posted total margin declines in FY 2011 compared with FY 2010.
• Disproportionate share hospitals recorded median total margins of 0.1 percent. Non-DSHs had a median margin of 3.1 percent.
• Sturdy Memorial Hospital in Attleboro, Mass., had the highest total margin at 9.7 percent. Nantucket (Mass.) Cottage Hospital had the lowest total margin at negative 20 percent.
• Lahey Clinic in Burlington, Mass., had the highest operating margin at 8.6 percent, while Nantucket Cottage Hospital again recorded the lowest at negative 24.9 percent.
• The statewide median for days in accounts receivable was 38.
• The statewide median for cash flow to total debt was 14.9 percent.
Urban safety-net hospitals and community hospitals were the most common groups that lost money last year. Overall, the median total margin for Massachusetts hospitals decreased from 2.6 percent in FY 2010 to 2.1 percent in FY 2011. Here are other major findings from the report:• Hospitals in the state's southeast region recorded the highest cumulative margin at 5 percent, while those in the northeast region posted a cumulative 0.4 percent margin, the lowest of any region.
• Teaching hospitals had higher profitability than community hospitals in each of the past five years, although both posted total margin declines in FY 2011 compared with FY 2010.
• Disproportionate share hospitals recorded median total margins of 0.1 percent. Non-DSHs had a median margin of 3.1 percent.
• Sturdy Memorial Hospital in Attleboro, Mass., had the highest total margin at 9.7 percent. Nantucket (Mass.) Cottage Hospital had the lowest total margin at negative 20 percent.
• Lahey Clinic in Burlington, Mass., had the highest operating margin at 8.6 percent, while Nantucket Cottage Hospital again recorded the lowest at negative 24.9 percent.
• The statewide median for days in accounts receivable was 38.
• The statewide median for cash flow to total debt was 14.9 percent.
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