Twenty of Connecticut”™s 28 acute-care hospitals finished fiscal year 2019 in the black, posting a collective operating revenue gain of $611.9 million ”“ a 12% increase over FY18, according to the state Office of Health Strategy.
Thanks to Covid-19, fiscal year 2020 will likely tell a very different tale.
Hospitals statewide earned $70.7 million from sources unrelated to patient care (or non-operating revenue) such as revenue from investments, unrealized gains on investment holdings, and gains from affiliates or joint ventures. OHS said the 65% decrease from the $202.6 million earned in FY18 was due in part to fluctuations in the financial markets.
The statewide total margin was 5.15% in FY19, a drop from 5.92% in the previous year. The five-year average total margin was 5.89%. Total hospital net assets/stockholder equity decreased by $53 million to $7.3 billion in FY19.
Statewide hospital uncompensated care charges totaled $806 million, a $41 million or 5.3% increase from FY18.
Unpaid medical bills, classified as “bad debts,” rose to their highest level since FY16, reaching $417.2 million. Bad debts accounted for 52% of uncompensated care charges in FY19 while charity care accounted for 48%; bad debt accounted for 49% and charity care accounted for 51% in FY18.
Of the eight hospitals that did not realize a gain in operating revenue, only one was in Fairfield County: Norwalk Hospital, which experienced a $7.3 million loss from operations and a $2.1 million non-operating loss, resulting in a deficiency of revenues over expenses of $9.4 million.
Other Fairfield County results:
- Bridgeport Hospital: $37 million in income from operations and $3 million in non-operating revenue, resulting in an excess of revenues over expenses of $40 million.
- Danbury Hospital: $18.6 million in income from operations and $1.4 million in non-operating revenue, resulting in an excess of revenues over expenses of $20 million.
- Greenwich Hospital: $13.7 million in income from operations and $1.6 million in non-operating income, resulting in an excess of revenues over expenses of $15.3 million.
- St. Vincent”™s Medical Center (Bridgeport): $29.7 million in income from operations and a non-operating loss of less than $100,000, resulting in an excess of revenues over expenses of $29.7 million.
- Stamford Hospital: $41.1 million in income from operations and a $500,000 non-operating loss, resulting in an excess of revenues over expenses of $40.6 million.
As for health systems, Yale New Haven Health ”“ which includes Bridgeport and Greenwich hospitals ”“ had a profit of $254.2 million, while Western Connecticut Health Network (now Nuvance Health), which includes Danbury and Norwalk hospitals, posted a profit of about $1.1 million. Stamford Health and its affiliates had a loss of $990,000, while St. Vincent”™s and its affiliates posted a loss of nearly $3.5 million.
