PHC4 | Financial Analysis 2012 | Volume Three

Financial Analysis 2012 - Volume Three - News Release

Contact: Paul Hambke, Press Secretary
717-232-6787 ext. 1119 or

NON-GENERAL ACUTE CARE FACILITIES RECORD POSITIVE MARGINS

Harrisburg, PA - December 12, 2013 - All non-general acute care health facilities in Pennsylvania providing rehabilitation, psychiatric, long-term acute care and specialty services had positive operating margins during 2012, according to a report issued Dec. 12 by the Pennsylvania Health Care Cost Containment Council (PHC4).

A measure of profitability, operating margin indicates how much of each dollar reimbursed is left after operating expenses are considered. Operating margins matter because they measure efficiency of a healthcare provider’s operation.

PHC4’s report on non-general acute care health care facilities in the state is the third in its three-part Financial Analysis series. Volume One, released in May, reported on the financial health of general acute care hospitals. Volume Two, released in November, focused on ambulatory surgery centers.

Operating margins were:

For the state’s 19 rehabilitation hospitals: an average increase of 0.95 percentage points, from 13.7% in Fiscal Year 2011 (FY11) to 14.65% in FY 2012 (FY12). The statewide average total margin for rehabilitation hospitals decreased 0.88 percentage points from 13.45% in FY11 to 12.57% in FY12.
For the state’s 27 long-term acute care (LTAC) hospitals: an average increase of 0.82 of a percentage point, from 5.94% in FY11 to 6.76% in FY12. The statewide average total margin increased 1.19 of a percentage point, from 4.68% in FY11 to 5.87% in FY12.
For the state’s 19 non-state-operated freestanding psychiatric hospitals: a 0.07 percentage point decrease in the statewide average operating margin, from 5.3% in FY11 to 5.23% in FY12. The statewide average total margin decreased 0.69 of a percentage point, from 4.79% in FY11 to 4.1% in FY12.

“Pennsylvania’s non-general acute care hospitals play a vital role in the commonwealth’s health care system and it is important both to health care and the state’s economy that they remain viable,” said Joe Martin, executive director of PHC4.

Other report highlights:

Statewide, the four types of non-GAC hospitals treated 5.5% of the patients receiving inpatient care during FY12 and logged 5.3 percent of the outpatient visits.
Uncompensated care as a percent of net patient revenue in FY12 ranged from 0.46% to 1.85% among the various non-GAC hospital categories.
Statewide, the number of rehab patient days increased 1.3% during FY12.
The Commonwealth, through the Pennsylvania Department of Public Welfare (DPW), is the largest provider of psychiatric care in the state. DPW’s six state psychiatric hospitals provided 25.2% of all patient days of psychiatric care during FY12. In addition, the Medical Assistance (MA) program provided 53.9% of the net patient revenue received by the 19 psychiatric hospitals in Pennsylvania during FY12.
LTAC hospitals received 74.6% of their patient revenue from Medicare patients during FY12.

PHC4 is an independent state agency charged with collecting, analyzing and reporting information that can be used to improve the quality and restrain the cost of health care in Pennsylvania. Copies of Financial Analysis 2012, Volumes One, Two and Three, are free and available from PHC4’s website at http://www.phc4.org.