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: John Blair

Phone: (860) 418-7024

FOR IMMEDIATE RELEASE

January 24, 2007

CONNECTICUT OFFICE OF HEALTH CARE ACCESS (OHCA) PUBLISHES REPORT ON FY 2005 HOSPITAL FINANCIAL STABILITY

Hartford – When examined on a statewide basis, Connecticut acute care hospitals showed slightly weakened performance in FY 2005, with more hospitals showing negative operating (11 versus 8) and total (7 versus 5) margins than in FY 2004, declines in both the statewide median total (from 2.1% to 1.8%) and median operating (from 1.4% to 0.7%) margins, a small drop in the number of days cash on hand, increased uncompensated care costs and an increase in the use of debt financing in asset acquisition.

 

OHCA’s Annual Report on the Financial Status of Connecticut’s Short Term Acute Care Hospitals showed that, as of FY 2005, six hospitals had negative three-year average total margins: Bristol Hospital, Bradley Memorial Hospital and Medical Center, Rockville General Hospital, Windham Community Memorial Hospital, Connecticut Children’s Medical Center and Waterbury Hospital.  This three-year average of total margin was calculated by OHCA in an effort to understand financial performance over time. “Hospitals that are consistently unprofitable will have insufficient funds to meet current requirements, to replace aging plants or to invest in new technologies,” said OHCA Commissioner Cristine A. Vogel.

 

Despite the slight decline in overall financial performance, more than half (55%) of all Connecticut hospitals saw improvements in their total margin as compared to FY 2004, and 15 of the state’s 31 acute care hospitals had total margins exceeding 2%. The total margins show large variation in FY 2005, with four of the six “negative margin hospitals” having margins exceeding negative 3% and four of the 24 “positive margin hospitals” with margins greater than 7%. St. Vincent’s Medical Center had the highest total margin in FY 2005, at 10.9%.

 

While Connecticut’s hospitals vary significantly in size and the populations they serve, they face many of the same operational challenges, both internal and external. The report provides information and insight on issues and trends that affect overall hospital performance. It focuses on six criteria – profitability, revenue and expenses, reimbursement, liquidity, capital structure and utilization.

 

 

A complete copy of this report will be available next month and can be obtained at http://www.ct.gov/ohca