Hospital Margins — Florida
- Florida Hospitals reported a 50% decline in net income in 2008
According to the Florida Hospital Association, Florida hospitals reported a 50% decline in net income in 2008, with overall margins falling to 2.6% compared to 5.4% in 2007. In 2008, 72 hospitals or 40% of all Florida acute care hospitals reported overall losses. This is the highest number of hospitals reporting losses in the past decade. Losses on investment income factored into the poor hospital financial performance.
Operating margins remained below 1%, reflecting the fact that hospitals are barely breaking even on their core business. Operating revenue grew 6% in 2008 but with operating expenses increasing 6.4%, hospitals saw operating income decline by 42%.
Uncompensated care costs continued to grow as Florida hospitals provide the primary source of care for the uninsured. In 2008, the cost absorbed by hospitals for those patients that could not pay their bills totaled $2.9 billion, up 11% from 2007. Approximately 9% of hospital expenses are associated with caring for those patients who cannot pay their hospital bill.
Source: FHA Releases Report on Hospital Financial and Operating Indicators. Florida Hospital Association. January 8, 2010. http://www.fha.org/Article.html?ArtID=8727
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