Operating in the red with decreasing patient revenues doesn’t make for a rosy picture for Bradford Regional Medical Center, but a spokesman said that’s far from the only thing to consider for the hospital’s future.
A report released this week from the Pennsylvania Health Care Cost Containment Council showed that rural hospitals are all in the same boat. In fact, 51% of the state’s general acute care hospitals posted a negative operating margin in fiscal year 2023.
Bradford Regional Medical Center, UPMC Cole in Coudersport and UPMC Kane were all included on that list, with BRMC’s margin more than three times worse than Cole’s.
BRMC’s operating margin was listed at -18.29%, while the total margin was -19.1%. The statewide average for the operating margin was 2.26%, while the regional average was -3.46%. UPMC Cole’s operating margin was -5.03%, while UPMC Kane’s was -1.88%.
“Bradford Regional Medical Center, like other healthcare facilities across the nation, has continued to operate with a negative profit margin since the pandemic,” said Upper Allegheny Health System spokesman Joseph Fuglewicz. “Agency costs, reimbursement rates, as well as the operation and maintenance of a century-old building continue to hinder our progress as an organization.”
Operating expenses, from fiscal year 2020 through 2023, in millions, were $66 in 2020, then $61, then $55 and then $51.
“We can say that we’re determined to continue to turn the business around with onboarding new nurses throughout the organization. In 2023, we onboarded over 50 nurses throughout BRMC and (Olean General Hospital), as well as targeted expense reductions,” he continued.
“Complementing those expense reductions are many growth opportunities that we’ve implemented, including doubling the number of sleep studies conducted inside the four walls of BRMC in the sleep disorders center, increased census at the Pavilion — which now adds a profit to the organization due to improvements, the recruitment of new physicians to the hospital, and our upcoming procedural lab,” Fuglewicz said. “The procedural lab will allow us to do elective outpatient procedures performed by our new vascular surgeon, Dr. Langan, as well as our interventional radiology team that consists of Dr. Dunleavy, Dr. Wilson and Dr. Devulapalli.”
Fuglewicz said BRMC’s employees, leaders and parent company Kaleida Health are committed to securing the hospital as a staple within the community “and providing comprehensive, quality care close to home.
“BRMC will continue to remain open, adapting to the ever-changing healthcare needs of the community, with no plans of shutting our doors,” the spokesman continued. “The Bradford community should continue to rally to save our hospital by using BRMC services and physicians to keep our healthcare local and in the hands of providers that live and work right in our region.”
According to the Cost Containment Council report, statewide operating income decreased from $2.5 billion in fiscal year 2022 to $1.4 billion in fiscal year 2023.
The report listed net patient revenue, in millions, for fiscal years 2020 through 2023. For BRMC, it was $59 million in 2020; $48 million in 2021; $43 million in 2022; and $39 million in 2023. And operating expenses have shown a downward trend, as follows: in 2020, $66; in 21, $61; in 22, $55; and in 23, $51 million.
For Penn Highlands Elk, the revenue, starting in 2020, in millions, was $61, then $64, then $68, and then $67. The operating expenses have shown an upward trend, starting at $60 million in 2020 and rising to $67 million in 2023.
For UPMC Cole, from 2020, in millions, started at $86, then $92, then $98, and then $89. Operating expenses have stayed somewhat steady, starting at $93 million in 2020 and then remaining at $96 each year since.
For UPMC Kane, from 2020, in millions, the revenue started at $20, then was $18, $22, and then stayed at $22 million in 2023. Expenses have stayed somewhat steady here, too, with $22 million in 2020 and 2021, $24 million in 2022 and $23 million in 2023.