Contact: Joe Martin
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NON-GENERAL ACUTE CARE HOSPITALS EXPERIENCED VARIOUS FINANCIAL MARGINS IN 2017

Harrisburg, PA - November 20, 2018 - Statewide operating and total margins experienced by Pennsylvania non-general acute care hospitals (non-GAC) during fiscal year 2017 (FY17) varied according to a new report released today by the Pennsylvania Health Care Cost Containment Council (PHC4). Non-GAC hospitals include rehabilitation hospitals, psychiatric hospitals, long-term acute care hospitals, and specialty hospitals.

Statewide total margins experienced by each facility type during FY17 ranged from 0.79% at psychiatric hospitals to 11.97% at specialty hospitals, and operating margins ranged from 0.70% at long-term acute care (LTAC) hospitals to 9.06% at rehabilitation hospitals. The foregone dollar value for Pennsylvania non-GAC hospital’s uncompensated care increased 5.76%, or $952 thousand, from $16.5 million during FY16 to $17.5 million during FY17.

“The hospitals featured in this report play a vital role in Pennsylvania’s overall health care system,” said Joe Martin, PHC4’s executive director.

Report highlights:

• During FY17, the operating margin for rehabilitation hospitals was 9.06%, psychiatric hospitals was 3.11%, long-term acute care hospitals was 0.70%, and specialty hospitals was 7.73%.
• During FY17, the total margin for rehabilitation hospitals was 9.07%, psychiatric hospitals was 0.79%, long-term acute care hospitals was 1.04%, and specialty hospitals was 11.97%.
• As a group, the foregone dollar value of uncompensated care for non-GAC hospitals increased 5.76%, or $952 thousand, from $16.5 million during FY16 to $17.5 million during FY17. Uncom-pensated care as a percent of net patient revenue in FY17 among the non-GAC hospitals ranged from 0.60% at long-term acute care hospitals to 1.22% at specialty hospitals.
• Non-GAC hospitals in Pennsylvania treated 6.01% of the patients that received inpatient care during FY17. GAC hospitals cared for 93.99% of the patients that received inpatient care.
• Non-GAC hospitals treated 5.68% of the statewide outpatient visits during FY17. The remaining 94.32% of the statewide outpatient visits were cared for at GAC hospitals.
• The average revenue per discharge during FY17 ranged from $6,919 at specialty hospitals to $41,982 at long-term acute care hospitals.

This is the third volume of a three-volume series of Financial Analysis 2017 reports. Volume One, which was released in April 2018, focused on the financial health of Pennsylvania’s general acute care (GAC) hospitals. Volume Two, released in October 2018, concentrated on Pennsylvania’s ambulatory surgery centers (ASCs). Volume Three focuses on Pennsylvania’s non-GAC hospitals, which include rehabilitation hospitals, psychiatric hospitals, long-term acute care hospitals, and specialty hospitals.

PHC4 is an independent state agency charged with collecting, analyzing and reporting information that can be used to improve the quality and restrain the cost of health care in Pennsylvania. Copies of Financial Analysis 2017, Volumes One, Two, and Three are available from PHC4’s website at www.phc4.org.