Despite a decline in profitability for acute hospitals in Massachusetts in fiscal year 2015, the majority were still profitable, with 80 percent of the state's 65 hospitals ending the year with a net profit, a new report shows.
The state's Center for Health Information and Analysis saw acute hospital profitability dip, with the statewide total margin falling to 3.7 percent compared to 4.2 percent the year before. Yet the overall operating margin improved statewide, with the median rising from 2.4 percent in 2014 to 3 percent in 2015. In all, 49 hospitals reported positive operating margins.
Broken down by hospital type, five of six academic medical centers reported positive operating operating and overall margins. The state's nine teaching hospitals experienced a significant decrease in median total margin from 2014 -- dipping from 8.2 percent to 4.2 percent -- but the median total and operating margin for teaching hospitals still remained higher than the statewide average.
There were 14 community hospitals in Massachusetts in 2015, and they reported the largest increase in median operating margin between the 2014 and 2015 fiscal years, and saw an increase in median total margin as well.
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Meanwhile, the 28 hospitals in the community disproportionate share hospital group boasted the highest median overall and operating margins of any other class.
The report showed regional differences played a role in financial performance as well. The hospitals with the highest total margins were found on the south coast region, followed by the metro west region near metropolitan Boston, and the cape and island region. Metro Boston and western Massachusetts hospitals showed the lowest profitability.
Among the most profitable hospitals were Massachusetts General and Brigham and Women's, both academic medical centers owned by Partners HealthCare. Mass General ended the year with $201.1 million in net income; Brigham pulled in $60.8 million.
Certain hospitals experiences sizeable net losses. North Shore Medical Center, which is also owned by Partners, lost $36 million. Tufts Medical Center lost $18.2 million during that time.
Twitter: @JELagasse