SPRINGFIELD — Baystate Health lost $146 million in 2024, according to a new statewide report tracking financial performance in health care.
Only Tufts Medicine — which lost $214 million — posted a bigger shortfall among the state's 23 hospital health systems, according to the state's Center for Health Information and Analysis .
Baystate Health had a profit margin of -6% and a -2.5% operating margin. Profit margins are earnings minus the cost of expenses. Operating margins are similar but don't take into account investment income.
Its flagship hospital, Baystate Medical Center, had a profit of $38.9 million, a 2.1% margin with a 1.7% operating margin, the report said.
In a statement, Baystate said, "CHIA's report underscores the significant financial strain Baystate Health and health systems across Massachusetts continue to face. Like more than half of hospitals statewide, Baystate Health experienced substantial losses in FY24 as cost pressures mounted across our hospitals, medical practices, and the communities we serve. Since launching our transformation, we have seen meaningful, measurable and consistent results and the strong systems and processes we are building have introduced new ways of thinking and sparked innovation in how Baystate Health operates and collaborates across its integrated delivery network."
"We do acknowledge that significant challenges remain, and we face continued financial pressures, including impending Medicaid changes and persistent gaps in reimbursement. We are grateful to our legislative delegation, the administration, and local leaders for their recent work in passing a hospital relief package, which is a vital step forward," Baystate said.
The CHIA report shows a statewide health care system under pressure. COVID-era subsidies are over, and hospitals are dealing with underpayments by government insurers Medicare and Medicaid.
Mercy Medical Center in Springfield had the lowest profit margin among independent hospitals and had the 10th lowest total margin among all hospitals, according to a new state report that looks at Massachusetts hospitals' financial health. (Douglas Hook / The Republican)Douglas Hook
Of the 23 health systems in the report, 17 of them, or 74%, reported making money. When looking at operating margins, only six of the 23 hospital systems reported positive numbers, the report said.
Thirty-three of 61 acute-care hospitals in Massachusetts reported a positive profit margin. But once again, the picture looks worse when looking only at operating income. Only 24 of 61 acute care hospitals reported positive operating margins.
Trinity Health , a national parent organization that owns Mercy Medical Center in Springfield, posted a total profit of $475 million but an operating loss of $68.4 million. But those numbers include numbers from facilities outside Massachusetts, according to CHIA.
Trinity's Springfield hospital, Mercy Medical Center, alone lost $29.8 million. It had the lowest margin among independent hospitals and had the 10th lowest total margin among all hospitals at 9.2%.
"Mercy's financial losses are primarily driven by a public payer mix that is among the most challenging in the state, with nearly 80% of the patients Mercy serves being covered by government payers (Medicare and Medicaid), which pay far below the cost to provide care," said Mercy spokeswoman Mary Orr in a written statement.
It's a complex health care landscape, she said. And Mercy is focused on initiatives and opportunities that are designed to maintain area residents' access to care.
Valley Health System, the parent of Holyoke Medical Center, broke even with a modest $100,000 profit, a margin of 0%. Looking solely at operating expenses, the profit was $1.3 million was 0.4%.
Holyoke Medical Center itself had a total profit of $2 million. Its operating margin was less than one percentage point.
Hospital spokeswoman Rebecca McGregor said there would be no comment on the CHIA report.
"We are in the black. Nothing more or less," she said.
In Northampton, Cooley Dickinson Hospital had a total profit of $9.3 million. Its operating margin was 5.2% and non-operating 1.8%.
Cooley Dickinson is part of Mass General Brigham in Boston, which reported a more than $2 billion profit for fiscal 2024, the CHIA report said. Its operating profit was $45 million.
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