Source: California Healthcare Foundation, June 2007
From the news release:
The financial health of California hospitals improved during a five-year period, but one-third of the state’s hospitals continue to lose money, reflecting a wide disparity in their performance, according to a comprehensive new report.
The analysis by consulting firm PricewaterhouseCoopers builds upon an earlier CHCF report that warned of a looming crisis in which a large proportion of financially under-performing hospitals would face closure. The new report finds that that crisis has not materialized. Although 28 hospitals closed during 2001 to 2005, the decline was similar to the earlier five-year period. In fact, most survived in a stronger financial state than predicted.
However, a gap in financial performance between the most profitable and least profitable hospitals persists. In 2005, median operating margin for the lowest performers (bottom quartile) was negative 5.6% compared to positive 7.3% for the high performers (top quartile).
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