How are Kentucky hospitals doing financially?

35 of 100 Kentucky hospitals (35%) reported a loss on patient care in their latest full-year Medicare cost report, compared with 55% nationwide. The median operating margin was 4.0%, higher 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.

Kentucky hospitals reported $265.8 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 Kentucky Hosp ($44.6 million), Norton Healthcare Pavilion ($40.3 million), Jewish Hospital ($14.8 million), University of Louisville Hospital ($13.5 million), St Elizabeth Med Center-South ($12.8 million).

Kentucky ranks 9 of 50 states by the median operating margin of its hospitals (1 = highest). A smaller share of its hospitals lost money on patient care than the U.S. as a whole (35% vs 55%).

Norton Healthcare Pavilion in Louisville reported the most net patient revenue: $3.3 billion in its latest full-year cost report, with 1,541 beds and an operating margin of 6.7%.

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.