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 11, 2008

 

Connecticut Hospitals realized modest gains

in (FY) 2007

 

Hartford – According to an issue brief released today by the Office of Health Care Access (OHCA), the overall financial condition of Connecticut’s 29 acute care general hospitals realized modest gains in fiscal year (FY) 2007. Statewide average total margin increased from 2.64% in FY 2006 to 3.60% in FY 2007. However, the increase in average total margin (+0.96) was primarily attributable to increases in non-operating margins (+0.79), rather than operating margins (+0.17).

 

Five hospitals had negative total margins in FY 2007, unchanged from FY 2006. Four hospitals achieved total margins in excess of 6%. Total margins varied from a high of 14.48% to a low of (-18.73%) with thirteen hospitals exceeding the statewide average of 3.60%.  Seven hospitals had negative operating margins in FY 2007, compared to eleven in FY 2006. Operating margins ranged from a high of 5.62% to a low of (-19.81%).

 

“Although the margins appear somewhat optimistic for FY07, I remain concerned with many of our hospitals’ ability to sustain the increasing costs related to energy, salaries and benefits, and supplies in general,” said Commissioner Cristine Vogel.

 

Further information on hospital financial performance will be available in the Annual Report on the Financial Stability of Connecticut’s Short Term Acute Care Hospitals that will be released in Fall 2008.

 

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