Connecticut’s state hospitals saw their profit from operations fall by about 35 percent in fiscal 2013, a new report shows, as both patient revenue and other income from operations slid for the year.
The new report from the state’s Office of Health Care Access also found income from non operational means such as financial investments and charitable giving rose by 35 percent.
Operating income was $334 million, compared to $514 million in fiscal 2012. Combining operational and non-operational income, profits were $597 million, compared to $708 million in fiscal 2012.
“While hospitals’ operational financial performance weakened in FY 2013, they continued to generate significant non-operating gains, helping to keep overall hospital financial performance strong,” the report said. “However, a robust financial picture should rely more on patient and other operating revenues and not on a less than reliable income source, such as investment performance.”
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Of Connecticut’s 29 state hospitals, 5 posted losses on the year, including Milford Hospital, which has posted negative margins for the past six years, the report said.
Bad debts weighed down the financial performance for several hospitals, the report claimed, accounting for 64 percent of uncompensated care charges in the fiscal year. Charitable care made up the remaining 36 percent.
In total, statewide uncompensated care totaled $673 million, up only 1 percent year-over-year.
The report also found more hospitals in the state are moving towards creating health systems and care networks.
“The changes that have occurred at the Federal and State level with the full implementation of the Affordable Care Act have clearly played a significant role in the ongoing reshaping of Connecticut’s hospital systems and the formation of more affiliations, both nonprofit and for-profit affiliations," it said.