FOR IMMEDIATE RELEASE Connecticut Department of Public Health
September 15, 2010 Contact: William Gerrish
Hospitals Improve Financial Performance
Hartford – The overall financial health of Connecticut’s 30 acute care hospitals improved in FY 2009 when compared to FY 2008, according to a report issued by the Connecticut Department of Public Health’s Office of Health Care Access. Average statewide total margin improved to 2.62% in FY 2009, a significant improvement from the –0.90% loss in FY 2008. Still, total hospital net assets continued to decline statewide, dropping $900 million from $4.5 billion in FY 2008 to $3.6 billion in FY 2009.
“Despite ongoing economic challenges, Connecticut’s acute care hospitals were able to improve their financial performance in fiscal year 2009,” stated DPH Commissioner Dr. J. Robert Galvin. “Three quarters of Connecticut hospitals achieved a positive total margin in FY 2009, compared to fewer than half in the previous year.”
The impact of the recession continues to affect non-operating income, which is derived primarily from investments in stocks and bonds, the value of held securities, endowments and charitable contributions. However, non-operating losses in FY 2009 ($7.8 million) were far less severe than in FY 2008 ($181.8 million). Also, net patient revenue, the revenue generated from patient care, increased by 7.4% in FY 2009, maintaining growth levels consistent over the past three years.
The report, published annually by the OHCA – an office within the Connecticut Department of Public Health – provides information related to the financial stability of Connecticut’s thirty acute care hospitals. The report highlights Connecticut’s statewide hospital trends and includes individual hospital profiles of financial performance. It is intended to provide information that may enhance knowledge of the financial status of Connecticut’s hospitals. The report also contains hospital and statewide operating margins, total margins, liquidity measures, payment to cost data, uncompensated care data, and net asset data.
For the complete report visit www.ct.gov/ohca.
The Connecticut Department of Public Health is the state’s leader in public health policy and advocacy with a mission to protect and promote the health and safety of the people of our state. To contact the department, please visit its website at www.ct.gov/dph or call (860) 509-7270.