Interesting Statistics on the Impact of the Economy on Hospital Finances

Here are some interesting statistics on hospital finances in the economic downturn, according to the March survey report titled Healthcare Financial Pulse: How Hospitals are Combating the Financial Downturn by the Healthcare Financial Management Association, which was based on responses from 263 hospital financial executives from across the country.

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Percentage of hospitals reporting negative total margins
All hospitals ─ 54 percent
Hospitals with less than 100 beds ─ 36 percent
Hospitals with 100-300 beds ─ 62 percent
Hospitals with 300-500 beds ─ 52 percent
Hospitals with more than 500 beds ─ 80 percent

Percentage of hospitals reporting decline in nonoperating income between June 30, 2008 and Dec. 31, 2008
All hospitals ─ 78 percent
Hospitals with less than 100 beds ─ 79 percent
Hospitals with 100-300 beds ─ 68 percent
Hospitals with 300-500 beds ─ 64 percent
Hospitals with more than 500 beds ─ 83 percent

Percentage of hospitals reporting investment portfolio value losses of more than 25 percent
All hospitals ─ 43 percent
Hospitals with less than 100 beds ─ 30 percent
Hospitals with 100-300 beds ─ 57 percent
Hospitals with 300-500 beds ─ 48 percent
Hospitals with more than 500 beds ─ 46 percent

Percentage of hospitals reporting declines in patient revenue
All hospitals ─ 43 percent
Rural hospitals ─ 60 percent
Urban hospitals in cities with 10,000-50,000 residents ─ 50 percent
Urban hospitals in cities with 50,000-2.5 million residents ─ 37 percent
Urban hospitals in cities with more than 2.5 million residents ─ 34 percent

Source: Healthcare Financial Management Association’s Healthcare Financial Pulse: How Hospitals are Combating the Financial Downturn (pdf).

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