OR: Updated Oregon hospital financials from 2007 – 2014

Note: this report updates a previous analysis of Oregon hospital financials. It includes additional data from Q4 2014 and revised margins.

This report provides an analysis of the financial health of Oregon Hospitals through the fourth quarter of 2014 and annually since 2007. Data is compiled from the databank provided by the Oregon Health Authority’s Health System Research and Data office.

2014 Results

Oregon hospitals' margins on operating and total revenues in 2014/Source: State of Reform with data provided by the Oregon Office of Health Systems  Data

Oregon hospitals’ margins on operating and total revenues in 2014/Source: State of Reform with data provided by the Oregon Office of Health Systems Data

Margins on operating revenue remained fairly stable between 5 and 7 percent throughout the year. Margins on total revenue saw more significant bumps in the 2nd and 4th quarters. Total margins include non-operating income from real estate investments, donations, etc.Most Oregon Hospitals posted strong margins on operating and total revenues in 2014. Of the 57 hospitals included in the report, only 10 reported a negative margin on total revenue. This continues a trend going back to 2007, where just eight hospitals have posted negative margins over that period.

Willamette Valley Medical Center posted the strongest margin percentage for the year with an over 18 percent margin on total revenue. PeaceHealth’s Sacred Heart Riverbend Hospital had the highest dollar margin at over $104 million for the year, which was good for the second highest margin percentage at 17 percent.

Ashland Community Hospital had the worst year in 2014, posting a negative margin of nearly 10 percent while losing over $4.5 million.

The ten hospitals with the highest margin on total revenue include:

  1. Willamette Valley Medical Center: 18.4% ($17.1 million)
  2. PeaceHealth Sacred Heart Riverbend: 17% ($104.1 million)
  3. McKenzie-Willamette Medical Center: 16.2% ($24.3 million)
  4. Good Shepherd Medical Center: 15.4% ($13.4 million)
  5. Legacy Meridian Park Medical Center: 13.5% ($28.6 million)
  6. Asante Rogue Medical Center: 13.5% ($59.7 million)
  7. Providence Newberg Medical Center: 12.2% ($12.1 million)
  8. Anthony Hospital: 11.9% ($7.8 million)
  9. Charles – Bend: 11.8% ($61.2 million)
  10. Mercy Medical Center: 11.3% ($23.5 million)

The ten hospitals that reported a negative margin on total revenue include:

  1. Ashland Community Hospital: -9.9% (-$4.5 million)
  2. Santiam Memorial Hospital: -7.1% (-$2.7 million)
  3. Charles – Madras: -5.5% (-$1.5 million)
  4. Pioneer Memorial Prinevelle: -4.7% (-$1.5 million)
  5. Alphonsus Medical Center Baker City: -1.9% (-$630k)
  6. Pioneer Memorial Heppner: -1.1% (-$81k)
  7. Good Samaritan Regional Medical Center: -1% (-$3.3 million)
  8. PeaceHealth Sacred Heart University: -0.8% (-$774k)
  9. Silverton Hospital: -0.4% (-$358k)
  10. Mid-Columbia Medical Center: -0.3% (-$307k)

Long-Term Trends

Oregon hospital margins on total revenue from 2007 to 2014/Source: State of Reform with data provided by Oregon Office of Health Systems Data

Oregon hospital margins on total revenue from 2007 to 2014/Source: State of Reform with data provided by Oregon Office of Health Systems Data

Since 2007 Oregon hospitals have largely maintained strong margins on total revenue, ranging between 5 and 7.4 percent. The one exception is 2008, when the margin on total revenue plummeted to just below 1 percent. This is likely due to the housing crisis’ impact on real estate investments because the margin on operating revenue was able to hold at just over 3.5 percent. Overall, Oregon hospitals have earned a 5.8 percent margin on total revenue since 2007.

Many of the most successful hospitals in 2014 have maintained this success since 2007. Eight of 2014’s ten hospitals with the highest margins are also among the top ten margins since 2007. Willamette Valley Medical Center again posted the highest margin percentage overall at 17.9 percent.In 2014, Oregon hospitals posted their strongest margins since 2007 at 7.4 percent. This represents over $4 billion in profits.

Likewise, five of the ten hospitals reporting negative margins on total revenue in 2014, also reported negative margins since 2007. PeaceHealth’s Cottage Grove hospital reported the largest losses since 2007 at negative 7.1 percent margin on total revenue. However it managed to climb out of the red for the first time in seven years with a 4.2 percent margin in 2014.[1]

See the tables below for a full breakdown of financial reports. Including a quarterly breakdown of 2014 and an annual breakdown from 2007 to 2014.


 

[1] While Kaiser’s Sunnyside Medical Center reported a $56 million loss in 2007, no revenue was reported and no reports have been filed since. Due to the lack of complete data it was not included in this comparison. This is also true for Shriner’s Children’s Hospital.