State’s Rural Hospitals Not so Healthy
By David Wenner, The Patriot-News, Harrisburg, Pa.
Jun. 12–The financial health of Pennsylvania hospitals continues to improve, although many small, rural hospitals are bleeding.
On average, hospitals earned $4.82 on every $100 they received for patient care in fiscal 2007.
That’s up 83 cents from the previous year, according to a report being released today by the Pennsylvania Health Care Cost Containment Council.
Hospitals say they need to earn $4 to $6 on every $100 of revenue to have enough money for upgrades.
In the Harrisburg region, Good Samaritan Hospital in Lebanon is the only one in the red, losing $1.06 on every $100 in operating revenue. That’s an improvement from the previous year, when it lost $4.49.
Bob Richards, the chief financial officer, said the loss was expected, and resulted from a recent expansion.
Overall, 42 hospitals, or 25 percent of the state’s hospitals, lost money, according to the report.
“This is troubling because most of these smallest hospitals are a vital resource for rural Pennsylvania communities,” the report said.
Pennsylvania hospitals also racked up $678 million in uncompensated care, up from $604 million the previous year. Uncompensated care includes bad debt and charity care.
“While this report is generally positive, we are cautious given the volatile economy and the effect it has on hospitals,” Carolyn F. Scanlan, president and CEO of the Hospital & Healthsystem Association of Pennsylvania, said in a written statement.
Area hospitals did slightly better than last year.
Holy Spirit Hospital in Cumberland County earned a slight profit after three years of losses.
The losses stemmed from costs related to labor shortages and new technology, said Manuel Evans, the chief financial officer. He said Holy Spirit’s overall financial health is good.
Carlisle Regional Medical Center saw a sharp drop in profits. It earned $11.50 for every $100 in revenue, down from $22.69 the previous year.
Carlisle Regional is the area’s only for-profit hospital.
Tony Smith, chief financial officer, noted the hospital’s fiscal year coincides with the calendar year, but the report reflects 2006-07.
In 2006, Carlisle Regional moved into a new, $73 million building, and that expense accounted for the drop in profits, Smith said.
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