CHIA Releases HFY 2021 Hospital Financial Performance Report
DATE: May 19, 2022
The Center for Health Information and Analysis (CHIA) today released a new report on hospital and health system financial performance for fiscal year (FY) 2021. This report provides a view of profitability, liquidity, and solvency for a majority of Massachusetts acute hospitals (47 of 61), as well as hospital health systems (21 of 25) in FY 2021. Data for hospitals with a fiscal year end of December 31 was not due until later and therefore is not able to be included in this report.
Some hospitals in Massachusetts received federal COVID-19 relief funds in FY 2021—a portion of which was reported as operating revenue—as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act; in addition, state relief funds were also distributed to hospitals. Most of this funding was received and reported previously in FY 2020.
- Overall acute hospital profitability in FY 2021, as measured by the median total margin, was 6.0%, an increase of 2.9 percentage points in comparison to the prior fiscal year. The statewide median operating margin was 1.2%, a decrease of 0.1 percentage points compared to FY 2020.
- Aggregate net patient service revenue, the most significant component of operating revenue, increased by $3.5 billion (14.6%) while aggregate expenses increased $2.5 billion (8.0%) in FY 2021 as compared to FY 2020.
- In FY 2021, hospitals received $405 million in federal and state COVID-19 relief funds to offset lost revenues and increased expenses due to COVID-19. These funds were reported as operating revenue and are included in both the total and operating margins.
- All four cohorts experienced an increase in total margins when compared to the prior fiscal year. The teaching hospital cohort reported the largest increase of 3.4 percentage points, while the community-high public payer cohort reported the smallest increase of 1.8 percentage points. Changes in total margin were influenced by non-operating margins during this period, which include both realized and unrealized investment gains and losses.
This publication includes a report with release notes and detailed data tables as well as a databook. To read future acute hospital and health system financial performance reports please visit www.chiamass.gov/hospital-financial-performance/.
CHIA will release an updated HFY 2021 report when data from hospitals with a December 31 fiscal year end date becomes available.