Backus, L+M and most other hospitals in state turned profit in 2018
Southeastern Connecticut’s acute-care hospitals — William W. Backus and Lawrence + Memorial — operated in the black in fiscal year 2018, as did a total of 24 of the 28 hospitals in the state, according to an annual report released this week by the Connecticut Office of Health Strategy.
Backus, in Norwich, generated $8 million in income from operations and $29 million in non-operating revenue, including investments, endowments and donations, resulting in $37 million in profit, the report shows. New London’s L+M Hospital generated $16.9 million from operations and $4.1 million in non-operating revenue for a profit of $21 million, according to the report.
The report finds that the state’s hospitals earned $545 million from patient care and related sources, a 41 percent increase over fiscal year 2017. Statewide hospital operating expenses rose 6.4 percent while operating revenues climbed 7.6 percent.
Hospitals collectively earned $203 million from sources unrelated to patient care, a 56 percent decrease over the previous year.
Connecticut hospitals’ total profit margin was 5.9 percent, down about 1 percent from 2017. Backus’ profit margin was 10.7 percent, while L+M’s was 5.9 percent.
“Health care costs are high and growing — we hear that every day from residents, and we see that reflected in the data,” OHS Executive Director Vicki Veltri said in a statement. “These reports give us insight into the financial health of our health care systems — which are economic drivers — and help policymakers address specific cost areas — like prescription drugs."
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