Although expansion of Medicaid under the Affordable Care Act has improved the bottom line for Oregon’s hospitals, forces outside their control – such as market fluctuations – have recently contributed to falling profit margins. The Oregon Health Authority reported these and other notable findings in the Oregon Acute Care Hospitals Financial and Utilization Trends 3rd Quarter 2015 publication.
More than half of Oregon’s hospitals reported non-operating losses in 2015 due to a sharp downturn in the stock market. While the median total margin across the state was down by 48 percent, the statewide third quarter operating margin was down 26 percent in 2015 compared to the same period in 2014.
Among urban hospitals hardest hit were Shriners, Providence and Tuality Healthcare (with total margins in the red at negative 169 percent, 13 percent, and 3 percent respectively). The worst hit rural hospitals were Coquille Valley and Harney District (with total margins in the red at negative 33 percent and 15 percent respectively.)
Hospital charity care spending followed a continued downward trend with a statewide decline of 21 percent (more than $90 million) in quarter three of 2015 when compared to the same reporting period in 2014.
Only three of Oregon’s urban hospitals increased charity care spending in the third quarter 2015: Legacy Mt Hood Medical Center (up 33 percent), Legacy Good Samaritan Medical Center (up 3 percent), and Legacy Meridian Park Med Center (up 1 percent). Rural hospitals that topped the charts for charity care giving included Wallowa Memorial Hospital (up 25 percent), Tillamook County General Hospital (up 15 percent), Southern Coos Hospital (up 58 percent) and Mid-Columbia Med Center (up 17 percent).
The remaining urban hospitals in Oregon revealed shrinking pockets for charity care. The table here shows 20 of Oregon’s urban hospitals with declining charity care spending of more than 10 percent in 2015 when compared year-to-year in quarter three. (To see the complete data for OHA’s quarterly report click here.)
On the upside, Oregon’s hospitals showed strong gains in net patient revenues. The statewide median was up 3.75 percent with urban hospitals showing the most consistent growth (gaining 7.3 percent year-to-year statewide in quarter three 2015 compared to same period in 2014).
The top 10 urban hospitals with biggest net revenue gains year-over-year in the third quarter 2015 were:
- McKenzie-Willamette Med Center, 24 percent
- Providence Portland Med Center, 14 percent
- Good Samaritan Regional Med Center, 13 percent
- Oregon Health & Science University Hospital, 13 percent
- Legacy Mt Hood Medical Center, 12 percent
- Mercy Medical Center, 11 percent
- Samaritan Albany Hospital, 11 percent
- Asante Rogue Med Center, 11 percent
- Legacy Good Samaritan Medical Center, 11 percent
- Legacy Meridian Park Med Center, 10 percent
Although inpatient discharges statewide dropped roughly 2 percent in 2015 (between the second and third quarters), the year-to-year increase for the third quarter showed an increase of 1.9 percent. The Health Authority report attributed this increase to the growing population in Oregon.
More individuals visited Oregon’s hospital emergency rooms in 2015 – statewide -- by 2 percent when compared to third quarter in 2014. However, the rates for emergency room visits were lower among the newly insured as compared to those with preexisting insurance (prior to the Affordable Care Act).
The majority of Oregon’s hospitals reported an increase in emergency room visits. Below are five urban and 10 rural hospitals seeing a year-to-year spike in emergency room visits of 10 percent or more in 2015.
(URBAN HOSPITALS)
- McKenzie-Willamette Medical Center, 27 percent
- Kaiser Westside Medical Center, 19 percent
- Samaritan Albany Hospital, 13 percent
- Good Samaritan Regional Medical Center, 11 percent
- PeaceHealth Sacred Heart University, 10 percent
(RURAL HOSPITALS)
- Pioneer Memorial Heppner, 22 percent
- Blue Mountain Hospital, 20 percent
- Southern Coos Hospital, 20 percent
- Providence Hood River Hospital, 15 percent
- Curry General Hospital, 14 percent
- Good Shepherd Med Center, 11 percent
- Providence Newberg Med Center, 11 percent
- West Valley Hospital, 11 percent
- St Charles - Madras, 11 percent
- Samaritan Pacific Community Hospital, 10 percent
Outpatient surgeries fell 6.7 percent in 2015 from same time period in 2014. The Health Authority attributed the decline in outpatient surgery to a continued rise of Ambulatory Surgical Centers.
It’s important to note that Kaiser Permanente does not submit financial data for individual hospitals therefore financial measures were not included in the quarterly report.
Kathryn can be reached at [email protected].
