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Financial Challenges for California Hospitals

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Publication Date: September 2001

Publisher(s): California HealthCare Foundation

Author(s): Shattuck Hammond Partners

Topic: Health (Hospitals and other health care facilities)

Type: Brief

Coverage: California

Abstract:

This issue brief covers the major findings of a Shattuck Hammond Partners study that examined hospital financial performance for the years 1995 through 1999. Findings include analysis of data for all 409 California hospitals that submitted disclosure reports in those years to federal and state agencies. The issue brief raises important questions facing health care industry leaders and policymakers, including:

*What is the current financial health of California's hospitals? *What are the recent trends in financial performance, in terms of margins, revenues, expenses, and capital? *Are the trends in financial performance consistent across various typologies of hospitals? *How large is the gap between strong and weak hospitals? *What are the public policy implications of the financial health of California's hospitals?

Shattuck Hammond Partners also polled leaders of 13 leading hospital and health system organizations in California on issues raised by the study. This research is intended to help policymakers, health care professionals, and the public better understand the issues contributing to the financial predicament looming before California's hospital industry.