OHS Releases Hospital Financial Stability Report For FY 2019Hartford – The state Office of Health Strategy (OHS) has released its report detailing the financial standing of Connecticut hospitals for the previous federal fiscal year. The Annual Report on the Financial Status of Connecticut’s Short Term Acute Care Hospitals includes all manner of financial data on revenue, expenses, cost of uncompensated care, and resulting margins.
More specifically, net patient revenue (highlighting major payer categories as well, i.e. non-governmental, Medicare, Medicaid, etc.), other operating revenue, and non-operating revenue are tabulated as are reported expenses and the aggregate, five-year trends in all categories of revenue, expense, and margins.
“The report highlights Connecticut’s statewide hospital trends and includes individual hospital profiles of financial performance,” according to its Executive Summary. “It is intended to provide information that will enhance knowledge of the financial status of Connecticut’s hospitals.”
This year’s report might well attract additional attention considering the ongoing coronavirus pandemic, but it includes only the financial data provided for the period through September 30, 2019. The financial impact of COVID-19 mobilization, equipment procurement, patient treatment, and lost revenue will be reported a year from now, with compilation of FY20 financial data.
This year’s report details increases over the past four years in net patient revenue, other operating revenue, and total operating revenue, and commensurate yearly increases in expenses. Moreover, the report indicates yearly decreases in non-operating revenue for fiscal years 2016 - 2019.
Statewide, the total margin of revenue over expenses was 5.15% in FY 2019, a drop from 5.92% the previous year. For comparison, the five-year average total margin was reported to be 5.89%. Statewide uncompensated care charges totaled $806 million for all hospitals in FY 2019, a $41 million or 5.3% increase from the prior year.
Other statewide figures extracted from the hospital financial data reported for FY19 include:
• Statewide Net Patient Revenue (NPR) was approximately $12.4 billion and accounted for 94% of operating revenues.
• NPR increased by 6.3% ($734 million) over the previous year due to increased hospital payments.
• Operating expenses rose 5.8% to $12.6 billion from the previous year, reportedly attributable to increases in salaries and wages (3%), supplies and medications (11%), and other operating expenses (9%).
“Hospital audited financial statements, which include balance sheet and statement of operations information, are a primary verifying source of information in this report,” the Executive Summary reads. “OHS also uses data and information filed each year by hospitals in their Annual Report and Twelve-Month Actual submissions, such as utilization statistics, uncompensated care data, and legal charts of corporate structure.”
The newly released data is attached with this release, and will be accessible at the OHS Website (https://portal.ct.gov/OHS) after September 8.