New York State Hospitals Post Record Profits

Albany, January 25, 1999 – The annual report of 1997 fiscal data submitted by the hospital industry was issued today by the State Health Department. The report shows that hospitals are generating record profits as they take advantage of New York's improved business climate.

Nearly 95 percent of the 221 hospital corporations referenced in the report are voluntary (not–for–profit). Only eight hospitals in New York State are proprietary (for–profit) institutions. Overall, revenue for voluntary and proprietary hospitals in New York State grew by approximately three and a half percent in 1997.

Together, voluntary and proprietary hospitals showed a collective profit – or in the case of non–profit institutions – a surplus of $739 million in 1997. That profit/surplus represents a more than forty–two percent increase over the previous year. On a revenue base of $25.7 billion, the 1997 surplus amounts to almost three percent.

During the previous reporting year, voluntary and proprietary hospitals had an overall net profit/surplus totaling $519 million, on a revenue base of $24.9 billion.

In addition to the profits generated by the proprietary and voluntary hospitals, the Department found that the nine major public hospital corporations in the state saw a system–wide net gain in 1997 totaling $851 million, or what represents 2.8 percent of total revenue. Overall, the state's major public hospitals posted a surplus of $112 million, a decrease of $68 million from 1996.

Financial reports are submitted to the Department annually by individual hospitals. The Department has adjusted the data to reflect certain accounting changes, and to ensure the information included in the report is comparable.

Following are highlights of the 1997 annual report of hospital data:

Voluntary and Proprietary Hospitals

  • Long Island hospitals had a net surplus of $119.3 million in 1997. A total of 17 hospitals had a surplus and 3 lost money. Saint Francis–Roslyn Hospital had the largest surplus, $32 million, and Mercy Medical Center had the greatest loss ($6 million).
  • New York City hospitals had an $337 million surplus in 1997. A total of 35 hospitals had a surplus and 11 posted a loss. New York Hospital had the largest surplus, $82.6 million, and Long Island College Hospital had the biggest loss ($26 million).
  • Northern Metropolitan hospitals (covering the lower Hudson Valley) had a net surplus of $79 million in 1997. There were 28 hospitals that had a surplus and six that lost money. Vassar Brothers Hospital had the largest surplus, $10.6 million, and Mount Vernon had the greatest loss ($2.9 million).
  • Northeastern New York hospitals had a net surplus of $67.5 million in 1997. A total of 18 hospitals had a surplus and three posted a loss. St. Peter's Hospital had the largest surplus, $15.3 million, and Mary McClellan Hospital had the greatest loss ($1.3 million).
  • Utica–area hospitals had a net surplus of $39.2 million in 1997. A total of 17 hospitals had a surplus and two lost money. Mary Imogene Bassett Hospital in Cooperstown had the largest surplus, $12.4 million, and Lewis County Hospital had the greatest loss ($5 million).
  • Central New York hospitals had a net surplus of $51 million in 1997. There were 13 hospitals with a surplus and two that lost money. Cayuga (formerly Tompkins Community Hospital in Ithaca) had the largest surplus, $15 million, and Auburn Memorial Hospital had the greatest loss ($1.8 million).
  • Rochester–area hospitals had a net surplus of $55 million in 1997. There were 11 hospitals with a surplus and two that lost money. Monroe Community Hospital had the largest surplus, $24.3 million, and Unity Health Care Group (comprised of Park Ridge and St. Mary's hospitals) had the greatest loss ($11.6 million).
  • Western New York hospitals had a net loss of $8.7 million in 1997. A total of 13 hospitals had a surplus and 12 lost money. Olean General Hospital had the largest surplus, $7 million, and Niagara Falls Memorial Hospital had the greatest loss ($15.8 million).
  • Watertown–area hospitals had a net loss of $752 thousand in 1997. E.J. Noble–Samaritan had a $720 thousand surplus, and Samaritan Medical Center had the greatest loss ($1.2 million).

Public Hospitals

  • New York City's Health and Hospitals Corporation had a net surplus of $104 million.
  • All but two other major public hospitals reported a surplus in 1997. Westchester County Medical Center posted a loss of $7 million and Nassau County Hospital lost $612,000.

1991–97 Hospital Profit & Loss

Year Public Vol & Prop
1991 ($184,982,239) $62,970,901
1992 ($188,438,189) $37,832,680
1993 ($329,322,441) $130,439,488
1994 ($138,789,054) $235,819,775
1995 ($96,231,068) $476,829,053
1996 $179,927,215 $519,090,809
1997 $111,822,206 $739,191,986