10 Most Profitable Hospitals in Philly Region
In 2014, the Hospital at the University of Pennsylvania was the highest-grossing hospital in the Philadelphia area (and the state of Pennsylvania) with $380 million in net income and almost $2.4 billion in revenue. In fact, it earned 28 percent more income than any other local institution and its revenues were 30 percent higher.
The numbers come from a new report by the Pennsylvania Health Care Cost Containment Council, an independent state agency.
The Children’s Hospital of Philadelphia ranked second in revenue at $1.8 billion and second in net income at $223 million.
In the Philadelphia region, 27 hospitals saw net income increases, while 18 hospitals lost money.
In this era of hospital merger and acquisition activity, will low performers be targets? One of the worst performers on the list was Mercy Suburban Hospital, which is set to be sold to Prime Healthcare Services Inc. which owns Roxborough Memorial Hospital and Lower Bucks Hospital. Mercy Suburban saw net patient incomes drop 7 percent in the past three years and net income was -$40 million.
Another poor performer was Hahnemann Hospital which had net income of -$31 million and an operating margin of -11 percent. Could it be a merger target?
City vs. Suburb
It’s interesting to compare the 20 hospitals in Philadelphia proper with the 25 just outside the city. The Philadelphia hospitals saw net patient revenues fall from $509 million in 2013 to $501 million in 2014. At the suburban hospitals, net patient revenue increased 1.2 percent from $188 million in 2013 to $191 million in 2014.
The city hospitals had net income of almost 33 million compared to the suburban hospitals at $9.8 million.
Here’s a table of the top 10 Philadelphia hospitals ranked by net income:
|HOSPITAL||Total Operating Revenue FY 2014 (thousands)||Operating Income FY 2014 (thousands)||Net Income FY 2014 (thousands)|
|Hospital of the University of Pennsylvania||$2,384,540||$297,162||$380,322|
|The Children's Hospital of Philadelphia||$1,828,528||$214,762||$223,424|
|St. Mary Medical Center||$438,862||$54,350||$69,352|
|Lankenau Medical Center||$424,816||$33,568||$47,867|
|Temple University Hospital||$874,146||$36,871||$44,618|
|Bryn Mawr Hospital||$321,025||$35,964||$42,658|
|Penn Presbyterian Medical Center||$560,550||$26,090||$29,115|
|Albert Einstein Medical Center||$584,738||($6,925)||$27,739|
|Fox Chase Cancer Center Hospital||$249,545||$26,172||$26,384|