A report by the Center for Health Information Analysis shows that hospital performance is strong compared compared against results in recent years. Martha’s Vineyard Hospital was among the hospitals analyzed that made the grade, according to a State House News Service report.
The latest report, analyzing the financial performances of Massachusetts acute care hospitals in the second quarter of fiscal 2013 was released August 26. It showed “somewhat lower” profits across the industry when compared to fiscal 2012, but still a relatively stable financial outlook, according the State House News Service.
The median performance of acute hospitals was “strong” compared with recent years, according to CHIA, which examined hospital profitability, liquidity, and solvency. A majority of hospitals were able to meet short-term obligations, while hospitals in the lowest quartile saw the greatest decrease in their equity financing ratio.
The profitability of “disproportionate share” hospitals that treat a larger number of Medicaid patients increased from 2.2 percent in fiscal 2012 to 3.5 percent in the second quarter of fiscal 2013, while non-disproportionate share hospital profitability decreased to 2.8 percent from 4.2 percent over the same timeframe.
Other financial ratios for both hospital groups remained stable, according to the report. Teaching hospitals continue to have higher margins than community hospitals, but both groups decreased to 4.5 percent and 2.7 percent respectively, from 4.8 percent and 3.4 percent.
The report examines hospital profitability, liquidity, and solvency in order to monitor and compare the financial status of acute care hospitals.
Martha’s Vineyard Hospital showed a .71 percent margin of profitability and a profit of $210,000. By comparison, its parent hospital, Massachusetts General Hospital showed a 3.07 percent margin of profitability for a profit of $48,574,000.