Non-General Acute Care Pennsylvania Hospitals Experienced Mixed Financial Margins in 2024

Statewide operating and total margins experienced by Pennsylvania non-general acute care (non-GAC) hospitals during fiscal year 2024 (FY24) were mixed according to a new report released today by the Pennsylvania Health Care Cost Containment Council (PHC4).

The Financial Analysis – Volume Three report presents a financial profile on Pennsylvania’s non-GAC hospitals, which include rehabilitation hospitals, psychiatric hospitals, long-term acute care hospitals, and specialty hospitals.

Barry D. Buckingham, the Executive Director of PHC4, stated, “Volume Three provides insight into information surrounding uncompensated care, operating margins, and average net patient revenue intended to provide stakeholders with fact-based information to prioritize resources.” He added this set of reports, Financial Analysis Volume One, Volume Two, and Volume Three, offer consistent and timely information that stakeholders anticipate and rely on to ensure they are informed.

Financial data displayed in Volume Three, show rehabilitation hospitals yielded a 10.42% operating margin, psychiatric hospitals 4.89%, long-term acute care hospitals 4.66%, and specialty hospitals experienced a negative 1.33% operating margin. In examining total margins displayed in Volume Three, it reveals that in FY24 rehabilitation hospitals yielded an 11.35% total margin, psychiatric hospitals 4.73%, long-term acute care hospitals 5.08%, and specialty hospitals 7.21%. One will find further insights into financial measures when accessing the full report, including visualizations that display non-GAC hospitals average net patient revenue and average total operating expenses, by facility type for FY24. The operating and total margins are also reported for fiscal year 2015 through FY24 by facility type.

For more information, visit phc4.org or review the full report here.

PHC4 is an independent council formed under Pennsylvania statute (Act 89 of 1986, as amended by Act 15 of 2020) in order to address rapidly growing health care costs. PHC4 continues to produce comparative information about the most efficient and effective health care to individual consumers and group purchasers of health services. In addition, PHC4 produces information used to identify opportunities to contain costs and improve the quality of care delivered. 

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