STATE OF CONNECTICUT
Office of Health Care Access
410 Capitol Avenue
Hartford, CT 06134
Phone (860) 418-7001
Fax (860) 418-7053
Contact: John Blair
Phone: (860) 418-7024
FOR IMMEDIATE RELEASE
OFFICE OF HEALTH CARE ACCESS RELEASES ANNUAL REPORT ON THE FINANCIAL STATUS OF CONNECTICUT’S Hospitals for FY 2003
The overall financial health of Connecticut’s 31 acute care hospitals has not changed significantly in FY2003 when compared to FY2002. Fiscal Year 2003 is the most recent audited financial data reported to the Office of Health Care Access (OHCA) and it continues to show that the state’s hospitals face increasing operating expenses such as malpractice insurance, supplies, salaries and benefits.
The statewide median operating margin (profit from operations) declined slightly from 0.6% in FY2002 to 0.3% in FY2003. Thirteen hospitals reported negative operating margins. The statewide hospital median total margin (profit from oeprating and non-operating revenues) increased from 0.1% in FY2002 to 0.4% in FY2003 mainly due to increases in other operating income with 12 hospitals showing negative total margins.
”Hospitals continue to be confronted by many of the same financial pressures as in the previous year,” Office of Health Care Access Commissioner Cristine Vogel said today. “The financial health of our hospitals is of concern. They are the backbone of our health care system.”
Connecticut hospitals’ total gross revenues were $10.8 billion, an increase of 15% from FY 2002, while hospital net revenue increased 8% to $5.2 billion. Total patient days and discharges increased 1%, the average length of stay remained at 5 days and hospital full time equivalents rose 2% during the year. Uncompensated care costs represented 2.8% of total expenses as compared to 3.1% in FY 2002. Inpatient net revenues have been decreasing as a percentage of total net revenue, while hospital outpatient net revenues have been increasing. This appears to be a trend in other states as well.
The report, published annually by the OHCA, contains a summary of Connecticut’s statewide results and individual hospital profiles for each of Connecticut’s acute care hospitals for Fiscal Year 2003. The report also contains hospital and statewide operating margins, total margins, liquidity measures, payment to cost data, uncompensated care data, net asset data, and information concerning Certificate of Need activity. For the complete report visit our web site www.ct.gov/ohca.