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CCM Health’s Financial Health Continues to Improve
The Minnesota Hospital Association (MHA) released its annual report on the financial health of Minnesota’s hospitals and health systems today. The report from MHA examines publicly available data for the 2019 fiscal year, the most recent available to MHA, that hospitals and health systems are required to submit to the Minnesota Department of Health (MDH) each year.
In the MHA report, CCM Health’s operating margin of 4.9% was ranked 16th out of 76 hospitals and health care systems throughout the state. A hospital’s and health system’s positive operating margin helps ensure its ongoing ability to serve patients in their community, invest in new services and equipment, to maintain strong credit ratings and affordable access to capital, and to recruit and retain the highly educated and skilled workforce necessary to care for patients.
“CCM Health’s ability to improve its financial health is a major accomplishment as health care organizations are facing significantly increased expenses in products, supplies, and services needed to care for patients,” said Brian Lovdahl, CEO of CCM Health. “In the past few years, we have worked purposefully and strategically to improve on the organizations financial health. This will allow CCM Health to grow and better serve our patients and the communities we are in.”
The financial health report from MHA shared that Minnesota hospitals’ operating margins declined in 2019 to 1.4% – a signal that Minnesota’s hospitals and health systems are experiencing challenges. These challenges could include declining reimbursements from both government and commercial payers, health care professional shortages that bring higher staffing costs, and increasing costs of products and supplies such as pharmaceuticals, devices, and technology systems for electronic health records.