News for Immediate Release
July 17, 2025
Harrisburg – PHC4 releases Financial Analysis – Volume One, today. The first volume of a three-part series of financial reports published annually by PHC4, Volume One displays financial information from general acute care (GAC) hospitals licensed in Pennsylvania during fiscal year 2024 (FY24).
“While the data shows many Pennsylvania hospitals experienced relatively healthy margins in fiscal year 2024, 37% lost money on operations and 32% lost money overall,” said Barry D. Buckingham, executive director of PHC4. “Also, the continued growth of uncompensated care remains a major concern for Pennsylvania hospitals.”
This report includes insight into the 153 GAC hospitals licensed in the Commonwealth that operated during at least some portion of FY24. Within Volume One the statewide average operating margin increased from 2.26% in FY23 to 6.80% in FY24. The data shows in FY24:
- 37% of PA GAC hospitals posted a negative operating margin
- 14% of PA GAC hospitals posted an operating margin between 0% and 4%
- 49% of PA GAC hospitals posted an operating margin higher than 4%
Volume One also reports that 32% of Pennsylvania’s GAC hospitals posted a negative total margin, 10% posted a total margin between 0% and 4%, and the remaining 58% posted a total margin higher than 4%. Regarding the margins observed in this report, Buckingham said, “The reasons for the significant increases identified in this year’s report are currently unclear. While the data reflects an upward trend, the underlying factors driving these changes have not been fully identified or analyzed. Further investigation is needed to pinpoint the specific contributors to this growth.”
PHC4 is an independent council formed under Pennsylvania statute (Act 89 of 1986, as amended by Act 15 of 2020) in order to address rapidly growing health care costs. PHC4 continues to produce comparative information about the most efficient and effective health care to individual consumers and group purchasers of health services. In addition, PHC4 produces information used to identify opportunities to contain costs and improve the quality of care delivered. For more information, visit phc4.org or access the report here.
Media contact:
Barry D. Buckingham, Executive Director, PHC4
