Crains New York - June 10, 2013 - (Page 15)

THE LIST New York Area’s Largest Hospitals Ranked by 2012 operating expenses TRENDS T hough the largest hospitals in the New York area remain profitable, operating expenses have outpaced gains in revenue. Annual operating expenses at the largest 25 hospitals jumped by 4.8% between 2011 and 2012; net patient revenue, however, increased by 4%, according to Crain’s research. This disparity, which is even larger among the top 10, is expected to grow. Tapering revenue is primarily the result of a decline in reimbursements from health insurance companies and a shift to less lucrative outpatient services.The number of inpatient days at the top hospitals declined by 1.9% from a year ago, according to Crain’s research. “Now the inpatient length of stay is shorter. Hospitals are less likely to keep patients overnight, or if they do, keep them for just one night for observation,” said Jim Tallon, president of the United Hospital Fund, an independent think tank. “In that same fixed capacity, they’re able to handle more patients, and they have become more efficient.” Sequester cuts this spring have also shrunk Medicaid payments to physicians by 2%. Hospitals are being forced to come up with new ways to pay for care. Nationally, charitable contributions to health care organizations grew 2.7% between 2010 and 2011, to $24.75 billion, according to Giving USA’s most recent annual report. Local hospitals that benefited from recent gifts include New York-Presbyterian/ Columbia, which received a $40 million gift from Herbert and Florence Irving to support its cancer center, and NYU, which got $17 million from the Steven and Alexandra Cohen Foundation to create a vet—emily laermer erans’ mental-health research center. Most expensive procedures at the top 25 hospitals Average covered charges Procedure Hospital Treatment of infectious and parasitic diseases Treatment of septicemia or severe sepsis Diagnosing respiratory system ailments Major small and large bowel procedures Spinal fusion except cervical Westchester Medical Center Westchester Medical Center Westchester Medical Center Westchester Medical Center University Hospital Average cost among top 25 $517,381 $180,241 $398,533 $160,393 $358,278 $183,573 $192,714 CCC :E< ;>3 ! 2012 $166,711 $390,460 2011 $103,527 Total inpatient days at top 25 5,751,980 ! ! ! 5,641,856 -1.9% 2011 Source: Centers for Medicare and Medicaid Services ! ! 2012 ! ! 135+ +13( !0,7(34,5: 142,5$. ;99A:5@E >5B1 "-:4-??1@ #, ')+! !') $+! 0*+% 9(&65,7( ,*& '%)-"$$ 1D1/A@5B1 05>1/@;> &1/2(04$5,10 +( 1605 ,0$, 142,5$. A?@-B1 ! !1BE %8-/1 #1C ,;>7 #, ! ',&+ "&" $+! 0*+% 9(&65,7( &&+! -"* <>1?501:@ /4512 1D1/A@5B1 &1/2(04$5,10 CCC 9?7// ;>3 CCC 9;A:@?5:-5 ;>3 CCC /4<:E/ ;>3 (/13,$. .1$0 (55(3,0* $0&(3 (05(3 ,;>7 B1 #1C ,;>7 #, &(&&+ 9(&65,7( )" !'%(*'& <>1?501:@ /4512 1D1/A@5B1 &1/2(04$5,10 CCC 9;:@125;>1 ;>3 CCC 910 :EA 10A 105(),13( (',&$. (05(3 @4 '@ >;:D #, &(&&+ 9(&65,7( +-& 0) <>1?501:@ /4512 1D1/A@5B1 &1/2(04$5,10 CCC 4-/71:?-/7A9/ ;>3 CCC :;>@4?4;>1856 /;9 01-: /4512 1D1/A@5B1 10* 4.$0' (8,4+ (',&$. (05(3 @4 B1 #1C E01 %->7 #, ')+! !') $+! 0*+% 9(&65,7( !&+$ "&!'$ 1D1/A@5B1 05>1/@;> &1/2(04$5,10 +4.8% Amounts that hospitals charge Medicare: (8 #13- 3(4%:5(3,$0 142,5$. @4 '@ #1C ,;>7 #, . ')# )*0+)"& $+!) 0*+% 9(&65,7( +-& ')."& /4512 1D1/A@5B1 &1/2(04$5,10 (5+ 43$(. (',&$. (05(3 5>?@ B1:A1 -@ -?@ @4 '@>11@ #1C ,;>7 #, '&+"&,,% $+! )+&)* & 9(&65,7( ))"* $) &1/2(04$5,10 $31,251.71 $29,822.09 #! $0*10( (',&$. (05(3 5>?@ B1 #1C ,;>7 #, &(&&+ 9(&65,7( ')+ )'**%& &1/2(04$5,10 Total operating expenses at top 25 (in millions) istockphoto THE SCOOP NEXT WEEK: The Fortunate 100: highest-paid CEOs CCC :;>@4?4;>1856 /;9 <>1?501:@ $&-(04$&- !0,7(34,5: (',&$. (05(3 %>;?<1/@ B1 -/71:?-/7 # #&*# &"-)*"+0 $+! +.')# 9(&65,7( ')+ ))++ <>1?501:@ /4512 1D1/A@5B1 -/71:?-/7 ):5B1>?5@E 1-8@4 #1@C;>7 &1/2(04$5,10 5 6-( 4 114(7(.5 142,5$. (05(3 9?@1>0-9 B1 #1C ,;>7 #, '&+"&,,% $+! )+&)* & 9(&65,7( )&# )'$"" <>1?501:@ &1/2(04$5,10 CCC /4<:E/ ;>3 Continued on Page 16 June 10, 2013 | Crain’s New York Business | 15

Table of Contents for the Digital Edition of Crains New York - June 10, 2013

SOURCE DINNER
IN THE BOROUGHS
IN THE MARKETS
DIGITAL NY
THE INSIDER
BUSINESS PEOPLE
SMALL BUSINESS
OPINION
STEVE HINDY
GREG DAVID
REPORT: HEALTH CARE
THE LIST
FOR THE RECORD
CLASSIFIEDS
REAL ESTATE DEALS
NEW YORK, NEW YORK
OUT AND ABOUT
SNAPS

Crains New York - June 10, 2013