Forty-one Massachusetts acute hospitals were profitable in fiscal year 2016 through June 30, according to a recent report from the Massachusetts Center for Health Information and Analysis.
The report examines financial performance for 53 of 65 acute hospitals in Massachusetts in FY 2016 through June 30. For most — but not all — hospitals, this period represents nine months of data. The hospitals are grouped into the following cohorts: academic medical centers, teaching hospitals, community hospitals, and community-disproportionate share hospitals. Specialty hospitals are not considered a cohort but are displayed and included in statewide median, agency officials said.
Here are four takeaways on Massachusetts acute hospital financial performance.
1. The median total margin of the 53 hospitals reporting remained consistent in FY 2016 through June 30 compared to the same period in the prior year at 3.6 percent.
2. The six reporting teaching hospitals had the highest median total margin of 8.4 percent in FY 2016 through June 30. The three remaining cohorts' median total margin decreased during the same time period. Academic medical centers had the lowest median total margin of all cohorts at 2.7 percent.
3. Five acute hospitals reported negative net assets in FY 2016 through June 30.
4. Acute hospital liquidity, according to the statewide median ratio, remained unchanged for reporting hospitals from the prior year at 1.8. A current ratio above 1.0 indicates that a hospital has sufficient current assets to meet current liabilities. Heywood Healthcare's Athol (Mass.) Hospital, Baystate Health's Baystate Noble Hospital in Westfield, and Partners HealthCare's Cooley Dickinson Hospital in Northampton, reported a current ratio less than 1.0.