Seems like many New York state hospitals have fallen on hard times. While the average profit margin for hospitals in the U.S. is 4 percent, half the state's hospitals lost money or reported margins below 1 percent, according to a new analysis by the Healthcare Association of New York State (HANYS). New York hospitals averaged operating margins of 0.9 percent, or $386 million across the state, according to a review of audited financial statements. A separate analysis by the American Hospital Association previously found that 86 percent of hospitals fell below the 4 percent operating margin standard.
Now, the question is whether the state's ongoing health system reforms can have an impact on this situation. With officials now forcibly restructuring the state's healthcare market, demanding that many hospitals merge with others, eliminate services or close, it will be interesting to find out whether they can turn these numbers around.
To learn more about the study:
- read this article in The Business Review
- see this HANYS press release