business
Pennsylvania hospitals financially healthier, but providing more uncompensated care
NEWS IN BRIEF — Posted May 16, 2011
Stock market gains have improved the balance sheets of Pennsylvania hospitals, but increased need for uncompensated care remains a financial strain, according to data released May 6 by the Pennsylvania Health Care Cost Containment Council.
The report, "Financial Analysis 2010, Volume One," is available online (link).
After two years of declines, the average total margin for hospitals in Pennsylvania grew from 2% in fiscal year 2009 to 5.3% in fiscal year 2010. Most of the gains were driven by nonoperating income, primarily from stocks, bonds and other investment vehicles. They grew from a loss of $535 million to a profit of $348 million.
However, uncompensated care continued to challenge hospital finances. The Hospital & Healthsystem Assn. of Pennsylvania used that fact to argue against proposed Medicaid cuts. The amount of uncompensated care provided by hospitals grew 8%, from $825 million in fiscal year 2009 to $891 million in fiscal year 2010.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/05/16/bibf0516.htm.
