The Center for Health Information and Analysis has released its latest report on Massachusetts Acute Hospital Financial Performance, with the study indicating the state’s hospitals were significantly impacted by COVID-19 in 2020.
The report provides a quarterly update on profitability, liquidity, and solvency for the fiscal year-to-date period ending March 31.The study covers the impact of COVID-19 on health care operations, according to a press release, although the previous study encompassed the first few weeks of the impact of COVID-19 on hospitals.
The key findings of the study include:
- The acute hospital median total margin was 3.7%, an increase of 6.2 percentage points in comparison to the same period in 2020, which was impacted by the beginning of the COVID-19 pandemic. When compared to the same period in FY 2019, the median total margin decreased slightly by 0.3 percentage points.
- 19 out of 23 hospital health systems were profitable and reported a positive total margin. These total margins were significantly influenced by non-operating revenues, which include both realized and unrealized investment gains and losses.
- The statewide median operating margin was 0.2%, an increase of 1.4 percentage points compared to the same period last year. When compared to the same period in FY 2019, the median operating margin decreased 2.7 percentage points.
- In aggregate, hospitals reported $209 million in COVID-19 relief funds as operating revenue during this time period, which is reflected in their total and operating margins.
More information, including a databook and financial reports, is available online.
