July 7, 2021
State report: Hospital finances severely impacted by COVID-19
Photo | Flickr | Ajay Suresh
The Massachusetts State House
By Sam Bonacci
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.
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