Hospitals in New York state continue to struggle financially, and a new study suggests that the average operating margin of New York's hospitals is negative, ranking it 49th among the nation's 50 states.
Results of the study, from the Healthcare Association of New York State, were partially based its results on a separate comparative report by the American Hospital Association that ranked relative financial performance of hospitals according to state.
The state group's analysis of New York hospitals' financial data found that more than half lost money or had operating margins of less than 1 percent in 2006.
Together, the state's hospitals had an average operating margin of -0.4 percent, better only than hospitals in Hawaii. The AHA reported that hospitals nationally achieved an average operating margin of 4 percent; one in seven New York hospitals were able to achieve that level of profitability, HANYS reported.
-BREAK_
Data provided by HANYS found that 94 facilities had operating margins from break-even to 4 percent, indicating slight profitability. Some 72 facilities had operating margins from -8 percent to break-even; and 11 had operating margins below -8 percent.
In terms of good financial performance, 22 facilities had operating margins of 4 percent to 8 percent; and five had operating margins that exceeded 8 percent.
HANYS' separate financial analysis of 2006 data estimated an average operating margin of 0.9 percent for state hospitals, slightly better than the AHA estimates. HANYS based results on the audited financial statements filed by state hospitals, and such statements aren't widely available to AHA when it makes its estimates.
HANYS said its analysis excluded results from a large public hospital system because of a one-time negative accounting change that would have artificially pushed statewide results lower.
However, the fact that the state's hospitals made money this year - after several years of losses, on average - may not last long, state association executives contend.
"Funding cuts enacted in early 2007, combined with the national economic and related Wall Street slowdown, strongly suggest that when updated data become available late next year, hospital margins will be found to have once again returned to the red," said HANYS President Daniel Sisto.
"Our healthcare system will not be able to keep pace with the evolution of medicine and patient care if the majority of our not-for-profit hospitals are losing money or essentially living paycheck to paycheck," Sisto added.