Connecticut hospitals’ total net assets increased by $24 million to $5.42 billion in fiscal year 2016, according to a new report.
Hospitals statewide recorded a total gain from operations of $348.1 million in fiscal 2016, an 18 percent decrease from the previous year’s gain from operations. For the same period they earned $515.7 million in income from non-operating sources of revenue – a dramatic turnaround from the previous year, when they lost a cumulative $1 million. Non-operating income is derived primarily from investments in stocks and bonds, the value of held securities, endowments and charitable contributions.
The report, published by the state Department of Public Health’s Office of Health Care Access, said that 71 percent, or 20 of 28, hospitals had a positive total margin. The average statewide total margin was 7.32 percent in fiscal 2016, up substantially from the previous year’s 3.89 percent.
During fiscal 2016, all but 11 hospitals reported an improved total margin; among those that did not were Bridgeport, Norwalk and Stamford. The report noted that those three facilities’ margins were still higher than the statewide average, with 9.03 percent, 9.18 percent and 7.77 percent, respectively.
On an individual basis, Bridgeport generated $40.5 million in income from operations and $6.1 million in non-operating revenue, while the city’s St. Vincent’s Medical Center recorded a $6.1 million loss from operations and had $6.2 million in non-operating revenue.
Danbury Hospital posted a $4.4 million loss from operations and had $29.1 million in non-operating revenue; Greenwich Hospital generated $30.9 million in income from operations and had $3.8 million in non-operating income; Norwalk totaled $4 million in income from operations and had $34.6 million in non-operating revenue; and Stamford posted $38.3 million in income from operations and had $1.5 million in non-operating revenue.
The report further noted that statewide bad debts accounted for more than 60 percent of uncompensated care charges, and charity care accounted for almost 40 percent, compared with 62 percent and 38 percent, respectively, in fiscal 2015.
Uncompensated care charges totaled $663 million, up 3 percent from fiscal 2015, the report added.