STATE OF CONNECTICUT

Office of health care access

410 Capitol Avenue

Hartford, CT 06134

Phone (860) 418-7001

Fax (860) 418-7053

Press Release

Contact: Carolyn Treiss

Phone: (860) 418-7024

FOR IMMEDIATE RELEASE

June 29, 2007

 

Connecticut Hospitals lost ground in FY 2006

 

HartfordAccording to an issue brief released today by the Office of Health Care Access (OHCA), the overall financial condition of Connecticut’s 30 acute care hospitals declined slightly in fiscal year (FY) 2006. Statewide average total margin dropped from 3.34% in fiscal year 2005 to 2.51% in 2006. While both hospital revenue and expenses increased in 2006, expenses grew at a greater rate, reducing hospitals’ operating gains. While fewer hospitals had negative total margins, more experienced operating losses. Nearly half of the state’s hospitals experienced operating losses in FY 2006, the highest number since 2000. In contrast to 2005, three fewer hospitals had total margins exceeding 6% and no hospitals reported operating margins greater than 6% in 2006.

 

“Our hospitals face multiple challenges and we are concerned about those that experience ongoing losses. In response to this concern, Governor Rell has requested the formation of a task force that will develop strategies to stabilize the system and ensure access to necessary and quality health care services,” said Cristine A. Vogel, OHCA Commissioner.

 

Further information on hospital financial performance will be available in the Annual Report on the Financial Stability of Connecticut’ Short Term Acute Care Hospitals that will be released later this summer.

 

Copies of this issue brief can be found on OHCA’s website at http://www.ct.gov/ohca