How are Massachusetts hospitals doing financially?

54 of 79 Massachusetts hospitals (68%) reported a loss on patient care in their latest full-year Medicare cost report, compared with 55% nationwide. The median operating margin was -9.0%, 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.

Massachusetts hospitals reported $417.4 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 Boston Medical Center Corporation ($104.6 million), Cambridge Health Alliance ($61.5 million), Massachusetts General Hospital ($44.4 million), Umass Memorial Medical Center INC ($35.2 million), Beth Israel Deaconess Medical Center ($17.4 million).

Massachusetts ranks 42 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 (68% vs 55%).

Massachusetts General Hospital in Boston reported the most net patient revenue: $4.1 billion in its latest full-year cost report, with 997 beds and an operating margin of -45.6%.

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.