The Center for Health Information and Analysis (CHIA) is pleased to release the Massachusetts Acute Hospital Financial Performance report for Fiscal Year 2012, Quarter 2.
The Fiscal Year 2012, Quarter Two (FY12Q2) acute hospital financial report provides a statewide analysis of acute hospital financial data. The report examines hospital profitability, liquidity, and capital structure ratios in order to monitor the financial status of acute hospitals. Presented are industry analyses and comparisons of financial performance trends of different hospital cohorts: teaching, community, Disproportionate Share Hospitals (DSH) and Non-Disproportionate Share Hospitals (Non-DSH).
Key Findings for Fiscal Year 2012, Quarter Two (FY12Q2)
- Massachusetts acute hospital financial performance improved from FY11 to FY12Q2.
- The median total margin increased from 2.1% in FY11 to 3.0% in FY12Q2. Most hospitals reported profitable financial performance in FY12Q2.
- Liquidity remained fairly stable with the majority of hospitals able to meet short-term obligations.
- Solvency, as measured by the equity financing ratio, improved for the majority of the industry.
- The Southeast region continued to have the highest median total margin in FY12Q2. The regional median total margins for hospitals ranged from 5.0% for hospitals in the Southeast Region to 0.4% for hospitals in the Central Region.
Profit Margin Trends FY08-FY12Q2
Year | Total Margin | Operating Margin | Non-Operating Margin |
2008 | 0.9% | 0.7% | 0.4% |
2009 | 2.2% | 1.9% | 0.2% |
2010 | 2.6% | 2.0% | 0.7% |
2011 | 2.1% | 1.7% | 0.3% |
2012 Q2 | 3.0% | 2.2% | 0.7% |
FY2012Q2 Results by Hospital Cohort
| Statewide Median (65) | Teaching Hospitals (18) | Community Hospitals (47) | Disproportionate Share Hospitals (29) | Non-Disproportionate Share Hospitals (36) |
Total Margin | 3.0% | 5.3% | 2.5% | 1.7% | 4.4% |
Operating Margin | 2.2% | 1.7% | 2.2% | 1.0% | 2.3% |
Non-Operating Margin | 0.7% | 1.3% | 0.6% | 0.3% | 1.3% |
Current Ratio | 1.48 | 1.54 | 1.41 | 1.18 | 1.58 |
Equity Financing | 41.8% | 44.3% | 36.4% | 19.0% | 43.3% |
FY2012Q2 Results by Hospital Region
| Central (8) | Metro Boston (25) | Northeast (10) | Southeast (11) | West (11) |
Total Margin | 0.4% | 2.7% | 3.6% | 5.0% | 3.5% |
