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Pa.'s Hospitals Hurting as Expenses Often Outpace Revenues
HARRISBURG, Pa. -- Despite rising revenues and imposing price increases, nearly half of this state's general acute care hospitals -- 87 of 182 -- still lost money in 2003, the Pennsylvania Health Care Cost Containment Council (PHC4), said today.Among the hospitals in western Pennsylvania, Ellwood City lost 15.17% in 2003 and an average of 4.31% for fiscal 2001, '02 and '03; Aliquippa Community 23.47 in '03 and an average of 26.03% for '01, '02 and '03 (it is in Chapter 11 bankruptcy), Medical Center of Beaver County, 2.67%, and an average of 1.11% for the last three years.Over the past three years, the agency said, 38% showed an average loss for the period, making it hard for them to improve their facilities and upgrade their equipment. For fiscal '03, Ellwood City enjoyed $26 million in net patient revenues, had total operating expenses of $28 million and an operating margin of -7.89%; figures in the same categories for Jameson Memorial in New Castle, $85 million, $89 million, 0.57%; Sharon Regional, $110 million, $119 million, 0.17%; St. Francis in New Castle did not submit its data; UPMC Horizon, $94 million, $90 million, 6.72%.Many hospitals saw their investments or investment income diminish, accounting in small part for their loss of revenues.Payments (revenue) for hospital care grew three times the rate of inflation last year, the agency reported, while hospital charges, up 22% in fiscal 2003 (year ended June 30), grew twice as fast as hospital expenses and net patient revenue. "Generally," said the report, 2003 Financial Analysis: Volume One, General Acute Care Hospitals, "the amount received by a hospital in payment is less than what was charged or billed."Driving the 9% increase in hospital net patient revenue was increased payments from managed care plans, the report said. "On average, payments per discharge grew three times faster in managed-care plans than in indemnity plans," PCH4 said.PHC4's report in its entirely can be found at its Web site, http:www.phc4.org "