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NON-GENERAL ACUTE CARE HOSPITALS EXPERIENCED MIXED FINANCIAL MARGINS IN 2021

Harrisburg, PA - November 16, 2022 - Statewide operating and total margins experienced by Pennsylvania non-general acute care hospitals (non-GAC) during fiscal year 2021 (FY21) 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 FY21 ranged from -3.02% at psychiatric hospitals to 12.04% at rehabilitation hospitals. The foregone dollar value for Pennsylvania non-GAC hospital’s uncompensated care decreased 6.19%, or $1.1 million, from $18.7 million during FY20 to $17.7 million in FY21.

“It’s important to note that the numbers included in this report include the financial impact of government relief funding and positive investment performance. 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 FY21, the operating margin for rehabilitation hospitals was 9.19%, psychiatric hospitals was a negative 2.86%, long-term acute care hospitals was 8.98%, and specialty hospitals was a negative 11.76%.
• During FY21, the total margin for rehabilitation hospitals was 12.04%, psychiatric hospitals was a negative 3.02%, long-term acute care hospitals was 7.76%, and specialty hospitals was 9.90%.
• As a group, the foregone dollar value of uncompensated care for non-GAC hospitals decreased 6.19%, or $1.1 million, from $18.7 million during FY20 to $17.7 million in FY21. Uncompensated care as a percent of net patient revenue in FY21 among the non-GAC hospitals ranged from 0.22% at long-term acute care hospitals to 1.44% at psychiatric hospitals.
• Non-GAC hospitals in Pennsylvania treated 5.95% of the patients that received inpatient care during FY21. GAC hospitals cared for 94.05% of the patients that received inpatient care.
• Non-GAC hospitals treated 4.12% of the statewide outpatient visits during FY21. The remaining 95.88% of the statewide outpatient visits were cared for at GAC hospitals.
• The average revenue per discharge during FY21 ranged from $5,519 at specialty hospitals to $54,039 at long-term acute care hospitals.

This is the third volume of a three-volume series of Financial Analysis 2021 reports. Volume One, which was released in June 2022, focused on the financial health of Pennsylvania’s general acute care (GAC) hospitals. Volume Two, released in October 2022, 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 2021, Volumes One, Two, and Three are available from PHC4’s website at www.phc4.org.