Financial Performance on the Rise for Calif. Hospitals, Data Show
Recent state reports suggest that California hospitals might be starting to recover from the effects of the recession, HealthLeaders Media reports.
The Office of Statewide Health Planning and Development provided the data, which cover about 85% of the state's 450 hospitals.
One report notes that during the fourth quarter of 2008, total margin was at -4.9% and operating margin was down to -1.1%. However, by the second quarter of 2009, hospitals' total margin climbed to +8.1% and operating margin reached +3%.
Hit Hard by Recession
Another OSHPD report suggests that hospitals experienced a dramatic drop in their investment portfolio during the recession (Clark, HealthLeaders Media, 10/23). Hospital investment income climbed from $427 million in 2004 to more than $1 billion in 2007, but dropped to a loss of $134 million in 2008 (Office of Statewide Health Planning and Development, 10/15).
Officials say many hospitals experienced a decline in the number of elective procedures performed during the recession. At the same time, hospitals saw a rise in the number of uninsured patients and patients enrolled in Medi-Cal, California's Medicaid program.Hospitals receive state and federal reimbursements for treating uninsured and Medi-Cal patients, but the payments often do not fully cover costs (HealthLeaders Media, 10/23). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.