CHIA Announces New Quarterly Hospital Financial Performance Report - Data Through June 30, 2020

DATE: December 3, 2020

The Center for Health Information and Analysis (CHIA) is pleased to announce the publication of a new hospital and health system financial performance report with data through June 30, 2020.

This report provides a quarterly update on profitability, liquidity, and solvency for the fiscal year-to-date period. This report has additionally been expanded to include the financial impact of COVID-19 on hospitals.

Governor Baker declared a state of emergency on March 10; therefore this report includes the first four months of the financial impact of COVID-19 on hospital health care operations. Federal COVID-related funding was distributed in April, May, and June to hospitals as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and is reflected in the data as operating revenue. State relief funds were also distributed to hospitals in this time period. 

Key Findings:

• As of June 30, 2020, 49% of hospitals (29 of 59) reported positive total margins. The median total margin was -0.7%, a decrease of 4.3 percentage points when compared to the same period last year.
  
  
  
• All four cohorts experienced a decrease in profitability when compared to the same period last year. The community hospital cohort reported the largest decrease of 7.3 percentage points, while the community-High Public Payer cohort reported the smallest decrease of 2.9 percentage points.
  
  
  
• The federal and state COVID-19 relief funds received by the hospitals had significant impacts on their reported operating revenue and income.

This publication includes a report with release notes and detailed data tables as well as a databook. For future monthly acute hospital and health system financial performance reports as well as CHIA's regular quarterly reports, please visit https://www.chiamass.gov/hospital-financial-performance/.