CA Hospital Margins on the Rise
Positive net income: The percentage of California hospitals that have a positive net income ranged from investor hospitals at 80% to city/county hospitals at 47.4% in 2010. The state average in 2010 was about 77%, increasing from 67.5% in 2006.
Payments from private managed care health plans were substantially higher than from Medicare or Medi-Cal, the state's Medicaid program. They increased from $3,627 per adjusted day in 2006 to $5,054 per adjusted day in 2010, or by 39%.
Labor costs, including salaries, wages and employee benefits, were substantially higher and increased faster than any other expense category, from $28.1 billion in 2006 to $36.4 billion in 1010, or by 29.5%.
Length of stay over the five-year period decreased by about one-fifth of a day for all payer types, but decreased the most, by nearly a half a day, for Medicare and self-pay or indigent patients.
Medi-Cal patients also had the longest length of stay, 6.22 days, two days more than private, non-Medicare, non-Medicaid third party payers, which had only 4.22-day lengths of stay.
Cheryl Clark is senior quality editor and California correspondent for HealthLeaders Media. She is a member of the Association of Health Care Journalists.
- Senators Hear How Two-Midnight Rule Harms Patients, Hospitals
- 3 Management Lessons from a Supermarket Debacle
- Medicare Advantage Carriers See 'No Choice' But to Accept Cuts
- Physicians to Appeal 'Docs v. Glocks' Ruling in FL
- IOM Identifies GME Problems, Calls for Finance Changes
- Healthcare Costs Start With What We Eat
- Handshaking Spreads Germs. Get Over It.
- Revenue Cycles Get a Boost from Simple JPEG Files
- Hospitals Likely to Outsource ICD-10 at Launch
- Anatomy of 3 Health System Rebranding Efforts