June 22nd, 2009

Reports the Pittsburgh Post-Gazette:

Even before the national economy tanked last fall, 30 percent of Pennsylvania’s acute care hospitals were losing money, according to a new financial analysis by the Pennsylvania Health Care Cost Containment Council.

And total margin for all hospitals — a measure of the hospitals’ profitability — dropped from 6.56 percent in fiscal 2007 to 4.7 percent last fiscal year, which ended June 30, 2008, the first decline in five years.

When calculating total margin, the council looked at a hospital’s expenses compared to revenues from both its operations and other sources such as investments. If total margin came out negative, it meant the hospital lost money.

Read more at the Post-Gazette.