Cincinnati, Northern Kentucky Hospitals Report Lower Profits

Patients delaying or even canceling hospital visits to save money continues to crimp hospital profits     Greater Cincinnati and Northern Kentucky hospitals saw combined profits of only .8 million in 2008 as the national financial crisis struck, according to a new report from a Minneapolis-based health care consultant.

That compares to profits of 0.5 million in 2007. The 2008 data is the latest available from an analysis of federal Medicare cost reports.

While investment losses played a part in the decline, the main culprit appears to be a 4 percent decline in inpatient hospital days. Even if they have insurance, patients are facing higher deductibles and out-of-pocket costs.

“Even patients with insurance are putting off elective procedures,” said Colleen O’Toole, president of the Greater Cincinnati Health Council, which includes the region’s hospitals as members. “And if you don’t have insurance, not only do you put off elective things, but you put off things you need.”

The Ohio Health Market review from consultant Allen Baumgarten is further confirmation of the toll the recession is inflicting on health care services. Hospitals say they’re seeing more uninsured patients in their emergency rooms and fewer paying patients. They say the trend could delay investments in new doctors, new equipment or new facilities for patients.

Among the region’s major hospitals, those earning profits in 2008 included sister hospitals Bethesda North and Good Samaritan, Drake Center, Jewish Hospital, University Hospital and Cincinnati Children’s Hospital Medical Center, according to the report.

Those suffering 2008 losses include Mercy hospitals in Mount Airy, Westwood and Anderson Township, Christ Hospital and St. Elizabeth Healthcare in Northern Kentucky.

Hospitals weren’t the only ones losing profits.

Profits from health-insurance plans in Ohio fell to .7 million in 2008 from 1.1 million two years before, the report said.

Baumgarten said profits at two insurers, Anthem Blue Cross & Blue Shield and Medical Mutual of Ohio, were especially strong.

Baumgarten said Anthem, one of the biggest health insurers in Greater Cincinnati, posted a 2008 profit margin of 12.7 percent in all of its Ohio operations.

Anthem said it makes only 3.7 percent profits to operate health insurance plans and that 87 cents of every premium dollar goes toward actual health-care costs.