Contact: Barry D. Buckingham
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NON-GENERAL ACUTE CARE HOSPITALS EXPERIENCED MIXED FINANCIAL MARGINS IN 2020

Harrisburg, PA - December 9, 2021 - Statewide operating and total margins experienced by Pennsylvania non-general acute care hospitals (non-GAC) during fiscal year 2020 (FY20) were mixed according to a new report released today by the Pennsylvania Health Care Cost Containment Council (PHC4). Non-GAC hospitals include rehabilitation hospitals, psychiatric hospitals, long-term acute care hospitals, and specialty hospitals.

Statewide total margins experienced by each facility type during FY20 ranged from -7.57% at specialty hospitals to 6.90% at rehabilitation hospitals. The foregone dollar value for Pennsylvania non-GAC hospital’s uncompensated care increased 18.7%, or $2.6 million, from $13.9 million during FY19 to $16.5 million in FY20.

“It’s important to note that the numbers included in this report include the financial impact of the COVID-19 pandemic. The hospitals featured in this report play a vital role in Pennsylvania’s overall health care system.” said Barry D. Buckingham, executive director of PHC4.

Report highlights:

• During FY20, the operating margin for rehabilitation hospitals was 6.67%, psychiatric hospitals were 4.14%, long-term acute care hospitals were 7.96%, and specialty hospitals were -9.89%.
• During FY20, the total margin for rehabilitation hospitals was 6.90%, psychiatric hospitals were 2.55%, long-term acute care hospitals was 6.86%, and specialty hospitals were -7.57%.
• As a group, the foregone dollar value of uncompensated care for non-GAC hospitals increased 18.66%, or $2.6 million, from $13.9 million during FY19 to $16.5 million in FY20. Uncompensated care as a percent of net patient revenue in FY20 among the non-GAC hospitals ranged from 0.39% at long-term acute care hospitals to 1.47% at psychiatric hospitals.
• Non-GAC hospitals in Pennsylvania treated 5.71% of the patients that received inpatient care during FY20. GAC hospitals cared for 94.29% of the patients that received inpatient care.
• Non-GAC hospitals treated 4.39% of the statewide outpatient visits during FY20. The remaining 95.61% of the statewide outpatient visits were cared for at GAC hospitals.
• The average revenue per discharge during FY20 ranged from $4,282 at specialty hospitals to $62,198 at long-term acute care hospitals.

This is the third volume of a three-volume series of Financial Analysis 2020 reports. Volume One, which was released in June 2021, focused on the financial health of Pennsylvania’s general acute care (GAC) hospitals. Volume Two, released in November 2021, 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 hospitals, 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 2020, Volumes One, Two, and Three are available from PHC4’s website at www.phc4.org.