The Center for Health Information and Analysis (CHIA) released its latest report
on Massachusetts Acute Hospital Financial Performance. This report provides a quarterly update on profitability, liquidity, and solvency for the fiscal year-to-date period ending March 31, 2021.
Hospital financial performance was significantly impacted by COVID-19 during calendar year 2020. The period ending March 31, 2020, which is used as a comparison for the data in this report, includes the first few weeks of the impact of COVID-19 on health care operations. COVID-19 relief funding was distributed beginning in April 2020 and a portion of this funding was reported as operating revenue. Most of the COVID-19 relief funding was received and reported in fiscal year 2020, but some entities continued to recognize that funding through the period ending March 31, 2021.
Each quarter CHIA reports on the financial performance of the Commonwealth's acute care hospitals, associated hospital health systems (HHS), and affiliated physician organizations. Including HHS and affiliated physician organizations helps develop a more complete understanding of the financial performance of an acute hospital in the context of the larger health system within which it operates.
- The acute hospital median total margin was 3.7%, an increase of 6.2 percentage points in comparison to the same period in 2020, which was impacted by the beginning of the COVID-19 pandemic. When compared to the same period in FY 2019, the median total margin decreased slightly by 0.3 percentage points.
- Nineteen out of twenty-three hospital health systems were profitable and reported a positive total margin. These total margins were significantly influenced by non-operating revenues, which include both realized and unrealized investment gains and losses.
- The statewide median operating margin was 0.2%, an increase of 1.4 percentage points compared to the same period last year. When compared to the same period in FY 2019, the median operating margin decreased 2.7 percentage points.
- In aggregate, hospitals reported $209 million in COVID-19 relief funds as operating revenue during this time period, which is reflected in their total and operating margins.
Additional profitability, liquidity, and solvency metrics are available in the databook.