patient care

PA hospitals' margins up, but uncompensated care rises

Anne Zieger — Tue, 17 Jun 2008 18:31:44 -0400

A new report from the Pennsylvania Health Care Cost Containment Council concluded that the overall financial health of the state's hospitals improved, though uncompensated care levels rose faster than the statewide increase in net patient revenue. The agency found that many of the state's 170 hospitals improved their performance in fiscal 2007, though the rising cost of uncompensated care was a big issue. All told, the hospitals' total income margin grew by more than a full percentage point in fiscal 2007, from 5.39 percent in 2006 to 6.51 percent in fiscal 2007. Meanwhile, uncompensated care was up $74 million this year, or 12.2 percent, to $678 million, climbing from 2.17 percent in fiscal 2006 to 2.27 in fiscal 2007.

Among the best performers in the state was the University of Pennsylvania Health System, whose dominant hospital, Hospital of the University of Pennsylvania, made almost $215 million from patient care last year, along with another $55 million in investment and endowment income. The hospital's operating margin was a whopping 14.28 percent in an area where 4 to 5 percent margin is considered a reasonable result. At the other end, Tenet-owned Hahnemann University Hospital had an operating margin of negative 18 percent, a loss of $65 million. About one-quarter of the state's hospitals posted negative total margins for fiscal 2007. Generally speaking, small community hospitals in rural areas didn't perform as well as larger ones in more urban areas.

To find out more about the state's hospital market:
- read this article from The Philadelphia Inquirer
- read this press release from the state

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ALSO NOTED: Study says nonprofit systems have higher quality scores; Grady gets $50 million as new board comes online; and much

Wed, 21 May 2008 06:59:50 -0400

> Ready for a conclusion that's likely to raise some hackles? A new study published in the Joint Commission Journal on Quality and Patient Safety suggests that not-for-profit health systems have higher quality scores than for-profits. Article

> Atlanta's Grady Memorial Hospital has gotten a $50 million cash infusion, the first payment of a total of $200 million, as a new nonprofit board takes over operations for the public hospital. Article

> Physicians with Tarrant County, Texas-based JPS Health Network, the county's public hospital system, are asking the county to study whether co-pays are a barrier to patient care. Article

> In an effort to cut costs by $17 million, Cleveland's MetroHealth Medical Center is laying off 73 people. This follows the hospital's first-quarter loss of $8 million. Article

And Finally... Hey, he's The Boss. How could it be too loud? Article

Case study: SC system pulls off turnaround

Wed, 07 May 2008 06:59:54 -0400

A South Carolina health system has turned things around dramatically for its two hospitals, turning a $5.7 million profit for 2007 after languishing for years. The Sisters of Charity Providence Hospitals haven't had excess income since 2004, losing $2.4 million in 2005 and $1.4 million in 2006.

To turn the system's fortunes around, executives made a variety of changes in staffing, including a drive to move office staff into roles more central to its survival, such as patient care and billing. It also focused on employee retention, particularly among nurses, by offering bonuses to not only the nurses, but also the team for which the nurse works when they stay a year. In addition, the hospitals took several steps to improve their income and cut expenses, including beefing up the collections process and negotiating new managed care and equipment contracts.

The system also received state approval for expansions of both its campuses, something that could help it stay on its feet for years to come.

To learn more about the system's turnaround:
- read this article from The State

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U of Kansas makes stunning turnaround
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