S&P: 34 Statistics on Nonprofit Health System Medians

Despite industry concerns over lower reimbursement and stagnant patient volumes, nonprofit health systems posted healthy financial medians in fiscal year 2012.

Standard & Poor's Ratings Services released nonprofit hospital and health system median reports this week. S&P analysts said health systems — especially those with higher credit ratings — are in a better position to "face the headwinds of a changing industry." Rising consolidation also favors health systems as they have been able to spread their costs over a broader reach.

Health systems continue to have higher credit ratings than standalone hospitals. Most of S&P's "AA" and high "A" organizations are health systems, whereas standalone hospitals dominate more of the low "A" and "BBB" ratings.

Here are 34 median statistics comparing various financial metrics at nonprofit health systems from FY 2011 to FY 2012.

Note: The following data are based on audited financial statements for 144 nonprofit health systems within S&P's database. A health system is defined as an organization with at least three hospitals. Examples of health systems within S&P's portfolio include OhioHealth in Columbus (rated "AA+"), Mayo Clinic in Rochester, Minn. (rated "AA"), Indiana University Health in Indianapolis (rated "AA-"), Catholic Health East in Newtown Square, Pa. (rated "A+"), Henry Ford Health System in Detroit (rated "A"), Lifespan in Providence, R.I. (rated "A-"), Barnabas Health in West Orange, N.J. (rated "BBB+"), and Temple University Health System in Philadelphia (rated "BB+").

Statement of operations

 

Category

FY 2011

FY 2012

Net patient revenue

$1.38 billion

$1.47 billion

EBIDA

$192.4 million

$198.1 million

Debt burden

2.8 percent

2.7 percent

EBIDA margin

11.7 percent

11.6 percent

Operating EBIDA margin

10.1 percent

9.7 percent

Operating margin

2.9 percent

2.9 percent

Excess margin

4.9 percent

4.7 percent

Maximum debt service coverage

4.2x

4.2x

 

Balance sheet

 

Category

FY 2011

FY 2012

Average age of plant

10.2 years

10.4 years

Cushion ratio

16.0x

17.3x

Days of cash on hand

188.8

193.8

Days in accounts receivable

49.5

50.8

Cash flow to total liabilities

15.5 percent

14.6 percent

Unrestricted reserves

$754.4 million

$834.9 million

Unrestricted reserves to long-term debt

133.7 percent

137.3 percent

Long-term debt to capitalization

38.1 percent

39.2 percent

Defined benefit pension funded status

73.6 percent

68.7 percent

 

More Articles on Hospital Financial Metrics:
S&P: Hospitals Had Stable 2012, But Financial Ratios Likely to Weaken in 2013
14 Statistics on Hospital Operating Ratios
Moody's: 100 Statistics on Children's Hospital Medians

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