|State of Connecticut Office of Health Access|
OFFICE OF HEALTH CARE ACCESS RELEASES STATEWIDE HOSPITAL FINANCIAL ANALYSIS
Hartford – The overall financial health of Connecticut’s 31 acute care hospitals improved during Fiscal Year (FY) 2004 when compared to FY 2003. FY 2004 is the most recent audited financial data reported to the Office of Health Care Access (OHCA).
The statewide hospital median total margin (operating and non-operating profits as a percentage of total operating revenue) increased from 0.4% in FY 2003 to 2.1% in FY 2004 due to increases in both gains from operations and other operating income. The number of hospitals with a negative total margin also improved, declining from twelve in FY 2003 to five in FY 2004.
The statewide hospital median operating margin (profit from operations as a percentage of total operating revenue) improved from 0.3% in FY 2003 to 1.4% in FY 2004. Eight hospitals reported a negative operating margin in FY 2004, down from thirteen in FY 2003.
“Although these results are encouraging, I remain concerned with the operating expenses that continually challenge our hospitals,” OHCA
Connecticut’s acute care hospitals total gross revenues in FY 2004 totaled over $12.4 billion, an increase of 15% from FY 2003, while hospital total net revenue, increased almost 9% to over $5.6 billion. Total patient days increased by 3%, total discharges increased by 2%, the average length of stay remained at 5 days, and hospital full time equivalent employees increased by 1% from FY 2003. Uncompensated care costs increased by 3% in FY 2004 from FY 2003, due to a 49% increase in free care for the same period. Uncompensated costs represented 2.9% of total expenses as compared with 2.8% in FY 2003. For the third consecutive year, inpatient net revenue as a percentage of total net revenue decreased by 1% a year to 60% of total net revenue in FY 2004.
The complete report, which is not yet available, contains a summary of