How are Michigan hospitals doing financially?

71 of 141 Michigan hospitals (50%) reported a loss on patient care in their latest full-year Medicare cost report, compared with 55% nationwide. The median operating margin was 0.0%, 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.

Michigan hospitals reported $484.3 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 Univ of Michigan Hospitals ($80.0 million), Henry Ford Hospital ($41.2 million), Spectrum Health - Butterworth Campus ($15.7 million), Edward W Sparrow Hospital ($15.2 million), Allegiance Health ($15.1 million).

Michigan ranks 19 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 (50% vs 55%).

Univ of Michigan Hospitals in Ann Arbor reported the most net patient revenue: $5.6 billion in its latest full-year cost report, with 975 beds and an operating margin of 1.6%.

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.