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NON-GENERAL ACUTE CARE HOSPITALS REPORT MIXED MARGINS

Harrisburg, PA - November 17, 2015 - Statewide average total margins experienced by non-general acute care hospitals (non-GAC) during fiscal year 2014 (FY14) ranged from 5.58% at long-term acute care hospitals to 14.87% at specialty hospitals, according to a report released today by the Pennsylvania Health Care Cost Containment Council (PHC4). “The rehabilitation, psychiatric, long-term acute care and specialty hospitals featured in this report are important components of the state’s health care delivery system,” said Joe Martin, PHC4’s executive director. “While the various categories of hospitals in this report showed mixed financial results in 2014 compared to the previous year, their overall profile indicates that they are generally stable.” Psychiatric hospitals operating margins increased from 8.29% in FY13 to 9.87% in FY14, while long-term acute care hospitals operating margins decreased slightly from 5.77% to 5.24%. Specialty hospitals operating margin increased from 5.25% in FY13 to 11.38% in FY14, while rehabilitation hospitals operating margin decreased slightly from 12.93% in FY13 to 12.74% in FY14.

Total margins for psychiatric hospitals increased from 5.82% in FY13 to 7.06% in FY14; long-term acute care hospitals total margin increased from 5.36% in FY13 to 5.58% in FY14; specialty hospitals total margin increased from 9.14% in FY13 to 14.87% in FY14; and rehabilitation hospitals total margin increased from 11.74% in FY13 to 12.78% in FY14.

Report highlights:

• Non-GAC hospitals treated 5.89% of the patients that received inpatient care during FY14. GAC hospitals covered 94.11% of the patients that received inpatient care.
• Non-GAC hospitals provided services for 5.48% of the statewide outpatient visits during FY14. The remaining 94.52% of statewide hospital outpatient visits were treated at GAC hospitals.
• The average revenue per discharge during FY14 ranged from $5,586 at specialty hospitals to $42,824 at long-term acute care hospitals.
• The average outpatient revenue per visit ranged from $104 at both psychiatric and rehabilitation hospitals to $439 at specialty hospitals.
• Statewide, inpatient revenue per discharge increased from $12,538 in FY13 to $13,174 in FY14 and outpatient revenue per visit increased from $392 in FY13 to $425 in FY14.

This is the third volume of a three-volume series of Financial Analysis 2014 reports. Volume One, which was released in May 2015, focused on the financial health of Pennsylvania’s general acute care (GAC) hospitals. Volume Two, released in October 2015, concentrated on Pennsylvania’s ambulatory surgery centers (ASCs). Volume Three focuses on Pennsylvania’s non-GAC hospitals, which include rehabilitation hospitals, psychiatric hospitals, long-term acute care and specialty hospitals.

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 2014, Volumes One, Two and Three, are available from PHC4’s website at http://www.phc4.org.