December 17, 2012

Hospital Profitability Declines

Hospitals in Central Massachusetts were among the least profitable in the state, on average, in the quarter that ended June, 30, 2012, according to state data.

The average profit margin for hospitals in the central region of the state was 1.1 percent, down from 2.7 percent in the second quarter.

It was also less than the statewide average of 2.8 percent. Through the third quarter of fiscal 2012, the statewide average was up from 2.1 percent in fiscal year 2011 as a whole.

The third-quarter data, released today by the Executive Office of Health and Human Services, lags – most hospitals are nearly finished the first quarter of fiscal 2013 – but it sheds some light on financial performance in this spring.

Saint Vincent Hospital in Worcester (which unlike most Massachusetts hospitals, finished its fiscal year June 30), posted the highest total margin of 9.9 percent and a surplus of $34.7 million for the year.

For local hospitals finishing their third quarter, Milford Regional Medical Center was best with a 6.4 percent margin and a $10.7 million surplus, followed by Health Alliance Hospital in Leominster, Heywood Hospital in Gardner and Harrington Memorial Hospital in Southbridge.

The remaining hospitals in Central Massachusetts posted negative margins, including Marlborough Hospital, UMass Memorial Medical Center, MetroWest Medical Center, Clinton Hospital and Athol Memorial Hospital.

Image credit: FreeDigitalPhotos.net.

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