A new report published by Connecticut”™s Office of Health Strategy found 18 of Connecticut”™s 27 hospitals ended Fiscal Year(FY) 2020 with a positive total margin, a situation molded by the medical and economic factors of the ongoing pandemic.
Statewide, the total gain from patient care and related sources (or operating revenue) for Connecticut”™s acute care hospitals was $40.9 million, down 93% from the previous fiscal year. Statewide, hospitals generated $324.6 million from sources unrelated to patient care (or non operating revenue), which included revenue from investments, unrealized gains on investment holdings and gains from affiliates or joint ventures. This was a 393% increase from the $65.8 million earned in FY 2019, a situation shaped by increases in the financial markets.
Total hospital net assets increased by $428 million to $7.67 billion in Fiscal Year 2020, while stockholder equity increased by $32 million to $123 million. Statewide hospital uncompensated care charges for the fiscal year totaled $774 million, a $32 million or 3.9% decrease from the prior year, while bad debts accounted for 52% of uncompensated care charges and charity care accounted for 48%, both were virtually unchanged year-over-year.
In general, the report determined that larger hospitals with a greater number of beds did better compared to smaller facilities.
“Statewide, the financial performance of Connecticut”™s hospitals and health care systems was substantially impacted by the Covid-19 pandemic,” said OHS Executive Director Vicki Veltri. “The significant drop in utilization of elective inpatient and outpatient services, as hospitals worked to intervene and treat residents during the height of the pandemic, is also reflected in a significant drop in facility fee revenue at nearly all hospitals.”
Veltria added, “An infusion of over $1 billion in Covid-19 relief funds from the federal government and subsequent state supports provided aid. Despite the impact of the pandemic, most hospitals retain significant net assets, and the majority of hospitals and three-quarters of our health systems ended the full FY 2020 with positive total margins due in part to the strong performance of the financial markets.”
Within Fairfield County, the situation varied significantly between the hospitals.
Bridgeport Hospital: This hospital is an affiliate of Yale New Haven Health Services. In FY 2020, the hospital experienced a $16 million loss from operations ”” it recorded a $36.9 million in net income one year before ”” and its $7.7 million in non operating revenue was up from $3 million in the previous year. As a result, the hospital had a deficiency of revenues over expenses of $8.3 million.
The hospital”™s total operating revenue was $727 million, up from $622 million one year earlier. Total emergency room visits totaled 92,092, down from 96,588 one year before.
Danbury Hospital: This hospital is an affiliate of Nuvance Health. In FY 2020, the hospital generated $1.9 million in income from operations, down from $18.6 million one year before, and had $15.6 million in non operating revenue, up from the previous year”™s $1.38 million, resulting in an excess of revenues over expenses of $17.5 million.
The hospital”™s total operating revenue was $668.6 million, down from $673.5 million in the prior year. Total emergency room visits totaled 70,084, down from 85,557 in FY 2019.
Greenwich Hospital: This affiliate of Yale New Haven Health Services generated $5.6 million in income from operations and had $9.3 million in non operating income, resulting in an excess of revenues over expenses of $14.9 million ”” one year earlier, it had $13.7 million in income from operations and $1.5 million in non-operating income.
The hospital absorbed $464.5 million in total operating revenue, up from $407.7 million in the year before. It recorded 31,799 in emergency room visits, down from prior year”™s 37,808.
Norwalk Hospital: This Nuvance Health affiliate brought about a $7.7 million loss from operations ”” one year earlier, the loss was $9.7 million ”” and it had $13.9 million in non-operating revenue, resulting in an excess of revenues over expenses of $6.2 million.
The hospital”™s total operating revenue of $374.1 million was up from $369 million 12 months earlier. It also treated 39,497 emergency room visits, down from 49,393 in the previous year.
St. Vincent”™s Medical Center: This Bridgeport-based affiliate of Hartford HealthCare. In FY 2020, the hospital experienced a $12.6 million loss from operations ”” it recorded a $29.7 million gain the year before ”” and experienced a non operating loss of $44,000, an improvement from its $71,000 loss in the prior year.
The hospital”™s total operating revenue of $391.5 million was down from $412.6 million in FY 2019. A total of 51,045 emergency room visits was lower than the 62,281 total one year ago.
Stamford Hospital: Fairfield County”™s sole hospital that is not an affiliate of a larger medical network generated $62.7 million in income from operations, up from last year”™s $41 million, and had $2.5 million in non operating income, compared to a $518,866 loss one year ago. This resulted in an excess of FY 2020 revenues over expenses of $65.2 million.
The hospital”™s total operating revenue of $656.2 million was up from $608.9 million one year earlier. And the 50,633 emergency room visits were down from 56,515 in FY 2019.
