Phoenixville Hospital continues to be one of the most consistently profitable in the region, according to a report released today by Pennsylvania Health Care Cost Containment Council. Statewide, hospital profitability increased, but the rate of its growth declined.
Phoenixville Hospital—one of five in southeastern Pennsylvania owned by Community Health Systems Inc., one of the largest for-profit hospital operators in the nation—had an operating margin of 7.75 percent in the fiscal year that ended June 30, 2011 and a total margin of 4.52 percent. Both of these figures outperformed state averages.
The hospital’s operating expenses increased from $134 million in 2008 to 149 million last year, while its net patient revenue rose from $149 million in fiscal 2008 to $160 million this past year. The hospital’s change in total operating expense did outflank its change in patient revenue in this period, 3.77 percent to 2.48 percent.
Curt Schroder, the regional executive for the Delaware Valley Healthcare Council, told the Philadelphia Inquirer to take the rosy report with a grain of salt.
He said that in the first six months of the current fiscal year, through December, profit “margins, both operating and total margins, have taken a pretty steep decline.” Schroder blamed this trend on last year’s state budget cuts and the dip in Medical Assistance reimbursements.