Financial Analysis 2016 – Volume One – News Release

Contact: Joe Martin
717-232-6787 or


Harrisburg, PA - April 26, 2017 - The foregone dollar value for Pennsylvania hospital’s uncompensated care has decreased from $975 million in FY15 to $846 million in FY16. The statewide percentage of uncompensated care to net patient revenue has been steadily decreasing for the past three years. In FY14, the percentage decreased from 2.81% in FY13 to 2.78% in FY14. In FY15, it decreased from 2.78% in FY14 to 2.43% in FY15. In FY16, the percent of uncompensated care to net patient revenue dropped from 2.43% in FY15 to 2.01% in FY16.

The report shows that the foregone dollar value of uncompensated care—uncollectible debt and charity care—provided by hospitals in the Commonwealth decreased by 13.3% in FY16, or $129 million, to a total of $846 million. “The percent of statewide uncompensated care foregone revenue has fallen to 2.01% of the reported statewide net patient revenue for FY16,” said Joe Martin, executive director at PHC4. “Certainly Pennsylvania Medicaid expansion programs have played a significant role in this decrease in uncompensated care.”

The statewide total margin realized by the General Acute Care (GAC) hospitals in Pennsylvania increased by 0.26 percentage points, from 5.64% to 5.90%, and the statewide operating margin increased 0.50 percentage points from 5.44% to 5.94% during the fiscal year that ended June 30, 2016 (FY16), according to a report released today by the Pennsylvania Health Care Cost Containment Council (PHC4). The statewide operating income for Pennsylvania hospitals increased 14.2% from $2.3 billion in FY15 to $2.6 billion in FY16.

Report highlights:

The Volume One Financial Analysis 2016 of General Acute Care hospitals is the first of a three part series of reports PHC4 publishes annually. Volume Two, focused on Ambulatory Surgery Centers and Volume Three on non-GAC hospitals, will be released later this year.

PHC4 is an independent state agency charged with collecting, analyzing and reporting information about the cost and quality of health care in Pennsylvania. Copies of Financial Analysis 2016, Volume One are free and available at PHC4's website at