The Office of Health Strategy has released its latest reports examining the financial condition of hospitals and health systems across Connecticut. The Annual Report on the Financial Status of Connecticut’s Short Term Acute Care Hospitals for Fiscal Year 2024 outlines statewide trends and provides individual hospital financial profiles.

According to the report, 56% of hospitals recorded a positive total margin in FY 2024. The statewide total margin reached 3.61%, up from 1.65% the previous year and above the five-year average of 2.77%. Hospitals collectively reported $41 million in operating gains, compared with $76 million in losses one year earlier. Non-operating revenue totaled $629 million.

Uncompensated care costs remained below 2% of total hospital expenses. The report also found that Medicaid reimbursement covered $0.87 for every dollar hospitals spent providing care. Medical group operating losses accounted for 65% of overall health system operating losses.

Officials say the findings offer a clearer picture of hospital finances and the broader healthcare environment.

“This report plays an important role in helping us understand the larger picture in hospital and health system financial performance,“ said Amy Porter, Acting Commissioner. “It helps to create a more balanced view of operating and non-operating revenue, and to identify where systems are experiencing losses.”

“The data demonstrates significant growth in total health system net assets, $1.2 billion since 2021, substantial gains in non-operating revenue $629 million and an improvement in statewide total margin,” Porter added. “It also highlights the challenges health systems face in growing operating expenses and the losses they experience, and where those losses originate.”