How are Alabama hospitals doing financially?

61 of 87 Alabama hospitals (70%) reported a loss on patient care in their latest full-year Medicare cost report, compared with 55% nationwide. The median operating margin was -10.6%, lower than the U.S. median of -1.6%. The operating margin leaves out donations, investment income and grants, so some of these hospitals still end the year in the black.

Alabama hospitals reported $427.7 million in charity care (the cost of free or discounted care for patients who qualify) in their latest full-year reports. The largest amounts came from University of Alabama Hospital ($96.3 million), D C H Regional Medical Center ($32.9 million), Southeast Alabama Medical Center ($24.5 million), Huntsville Hospital ($22.4 million), St Vincent's East ($19.4 million).

Alabama ranks 45 of 50 states by the median operating margin of its hospitals (1 = highest). A larger share of its hospitals lost money on patient care than the U.S. as a whole (70% vs 55%).

University of Alabama Hospital in Birmingham reported the most net patient revenue: $2.9 billion in its latest full-year cost report, with 1,166 beds and an operating margin of -7.7%.

It is how much a hospital keeps from patient care after paying its operating costs, as a share of its patient revenue. A margin of 5% means the hospital kept 5 cents of every dollar it earned from patients; a negative margin means patient care cost more than it brought in. It excludes donations, investment income and grants.