The Minnesota Hospital Association (MHA) today released its annual report
examining the financial health of Minnesota’s hospitals and health systems. The
report published examines publicly available fiscal year (FY) 2016 data – the
most recent available – that hospitals and health systems are required to
submit to the Minnesota Department of Health (MDH) each year.
While many financial indicators are relevant to a thorough analysis of
financial health, a hospital’s operating margin is the most recognizable
bottom-line measure of whether a hospital can continue to meet patient and
Minnesota hospitals’ operating margins declined in 2016. The overall median hospital operating margin in Minnesota declined from 2.4
percent in 2015 to 1.7 percent in 2016. This is concerning and reflects the
major challenges facing hospitals and health systems in today’s health care
While 43 of Minnesota’s general acute-care hospitals or health systems
generated positive operating margins in 2016, 28 others, or 39 percent,
experienced negative operating margins. The number of hospitals with negative
operating margins increased from 21 in 2015.
The median operating margin for urban hospitals was 3 percent, down
from 3.6 percent in 2015. For rural hospitals, the median operating margin was
1.1 percent, down from 2.2 percent in 2015.
Read the full report.