General Financial Health Of Rhode Island Hospitals Improves In 2007
Today, the Rhode Island Department of Health (HEALTH) released The Health of Rhode Island’s Hospitals (2007) detailing the financial performance of Rhode Island’s 13 hospitals over the period 2004-2007. The report also evaluates the state’s hospitals compared to those in the Northeast, and to a select group of the best hospitals across the country.
In 2007, local hospital performance improved. Overall profitability increased from 2.1% to 3.4%, with 8 of 13 hospitals increasing their profit margins. Growth in net worths also increased-- from +9% in 2006 to +14.7% in 2007. Individual capital structure and liquid assets also showed general improvement in 2007.
Compared to other hospitals in the Northeast in 2006 (the most recent year for comparable data), RI hospitals were less profitable and facility net worths grew at a slower pace. However, RI hospitals had less financial leverage and lower capital expenses than other hospitals in the region, but they had weaker liquidity and slightly slower collections of receivables.
In addition to benchmarking overall hospital financial performance, this report also ranked the individual facilities in the state using a composite of 12 individual measures over the course of four years. Based on this methodology, the top three performing hospitals were Newport Hospital, Bradley Hospital and The Miriam Hospital.
“Rhode Island’s 13 hospitals are a $2.9-billion-dollar industry with an annual payroll (with benefits) approaching $1.7 billion, and their financial health remains an issue.” said Director of Health David R. Gifford, MD, MPH. “These hospitals are critical to the state’s healthcare system and are economic drivers in their own communities. We need to continuously evaluate how the independent community hospitals fit into the broader health care system.”