Following three months (March—May) of devastating financial losses due to COVID-19, Massachusetts hospitals bounced back a bit in June and July, according to
a new report from the state’s Center for Health Information and Analysis (CHIA).
Thirty-seven of 61 acute hospitals and 11 of 25 hospital health systems submitted monthly data through July and are included in the CHIA report. The federal CARES Act funding that flowed to the state, as well as the restoration of in-person services, helped temper the losses that hospitals experienced from March through May. A CHIA report issued in September showed that median total margins plunged significantly in March across all hospital cohorts, ranging from negative 50.1% at teaching hospitals to negative 19.4% at academic medical centers. Community hospital margins decreased by one third – 33.2% – in March.
The new data shows 29 of 37 hospitals reporting a positive margin in June and 35 of 37 hospitals reporting a positive margin in July. The cohort of community hospitals continued to show negative operating margins in June, although all four cohorts – community hospitals, academic medical centers, teaching hospitals, and high public payer hospitals – showed positive margins in July.
MHA President & CEO Steve Walsh said of the new CHIA report, “We are certainly grateful for the relief provided to hospitals thus far, and for the ongoing support from Governor Baker, Congressman Richard Neal, and all our state and federal legislators. This support has helped hospitals stabilize and survive, and it will be more vital than ever as providers continue to navigate precarious financial circumstances and brace for a COVID-19 resurgence. Unfortunately, this will prove to be a very challenging season for our healthcare system yet again.”