Some hospitals see positives in recession

Nationwide, many hospitals are struggling to stay afloat. However, some facilities are starting to chart a course toward prosperity.

For instance, operating income at Children's Hospital in Boston grew 38 percent to $80.5 million in fiscal year (FY) 2009 ended Sept. 30 thanks to an uptick in patient-related revenue, reports the Boston Business Journal.

Net patient-service revenue topped $1.03 billion, 11 percent higher than the $926 million posted in FY 2008. Total revenue for FY 2009 was $1.29 billion, a 10 percent increase over FY 2008. The hospital's investment portfolio rose 4.3 percent in fiscal 2009 to $557.6 million and achieved a $27.9 million total return compared to $75.9 million loss the previous year.

Patient service revenue at Dana-Farber Cancer Institute Inc. in Boston grew to $445.3 million in FY 2009 ended Sept. 30, up from $391.2 million in FY 2008, reports another Boston Business Journal article. Total revenue was $807.8 million for FY 2009 vs. $737.6 million in FY 2008. Operating income rose 33.8 percent to $17.4 million from $13 million in FY 2008.

Dana-Farber's volume growth can largely be attributed to its focus on outpatient care, suggest analysts. Despite the growth, the hospital had to cut its budget by $10 million and eliminate about 100 positions to improve financial stability.

National Jewish Health in Denver, a 24-bed nonprofit respiratory hospital, is reaping the rewards of a 10-year strategic plan to increase services that it began implementing in 2007. Revenues increased from $149 million in 2008 to $170 million in 2009, largely driven by patient services. Patient services revenue jumped 60 percent over a two-year span, increasing to $78.1 million in 2009 from $49.1 million in 2007. In addition, National Jewish turned around a $2 million loss in patient services for 2007 to a $2 million profit in 2009.

For more information:
- read this Boston Business Journal article on Children's Hospital
- here's the Boston Business Journal article about the Dana-Farber Cancer Institute
- check out this Denver Business Journal article

Suggested Articles

Presidential candidate Kamala Harris wants to get rid of the tax break drug companies get for DTC ads

Healthcare software company Phreesia closed its first day of trading as a public company Thursday about 40% above its set price.

Growing the biosimilar market could lead to significant healthcare cost savings, according to a new report.