STATE OF CONNECTICUT
Office of health care access
410 Capitol Avenue
Hartford, CT 06134
Phone (860) 418-7001
Fax (860) 418-7053
Contact: Marybeth Bonadies
Phone: (860) 418-7001
FOR IMMEDIATE RELEASE
December 3, 2008
CONNECTICUT OFFICE OF HEALTH CARE ACCESS ISSUES REPORT ON FY 2007 HOSPITAL FINANCIAL STABILITY
Hartford – Although faced with significant and ongoing challenges, Connecticut hospitals showed some financial improvement in FY 2007. Connecticut’s thirty acute care hospitals realized modest financial gains in FY 2007, although FY 2008 will probably not show this same trend. In FY 2007, acute care hospital financial and utilization measures for many of Connecticut’s hospitals begin to demonstrate symptoms of more challenging times ahead.
The Annual Report on the Financial Status of Connecticut’s Short Term Acute Care Hospitals released by the Office of Health Care Access (OHCA) showed that in FY 2007, eight of the state’s hospitals experienced operating losses compared to twelve in FY 2006, and the number of hospitals with negative total margins dropped from six in FY 2006 to five in FY 2007. Also, six hospitals had negative five-year average total margins: Bristol Hospital, Connecticut Children’s Medical Center, Johnson Memorial Hospital, the Hospital of St. Raphael, Windham Community Memorial Hospital, and Waterbury Hospital. In all, there were 18 hospitals that had total margins greater than 2%.
Despite modest financial improvement over the previous year in operating margins and total margins, Connecticut’s acute care hospitals sustained decreases in payment to cost ratios for their Non-Government, Medicare and Medicaid payers of 2%, 4% and 4%, respectively, and uncompensated care costs (charity care and bad debts) rose by 19% from FY 2006 to $227 million. While overall statewide hospital inpatient utilization remained relatively stable with respect to total discharges, case mix index and average length of stay (ALOS), Non-Government discharges decreased by 1%, Medicaid and Medicare discharges increased by 5% and 2%, respectively, and hospital FTEs increased by 1,690 FTEs from FY 2006.
Although Connecticut’s acute care hospitals vary in bed capacity, specialty services offered, geographic location and populations served, they face many of the same internal and external challenges, such as staffing shortages, aging physical plants, space constraints, costs associated with new technology, increasing competition, energy costs and access to capital, all of which impact their overall financial stability.
This report attempts to provide a complete financial picture of Connecticut’s acute care hospitals on a statewide and individual hospital basis during FY 2007. The report provides information and insight on issues and trends that affect overall hospital performance. It focuses on the following criteria – profitability, cost data, liquidity, solvency, net assets, utilization, discharges, case mix index, uncompensated care data and emergency department visits.
A complete copy of this report can be downloaded or viewed completely in color by visiting OHCA’s website at http://www.ct.gov/ohca