ALBANY, N.Y. (NEWS10)- New York hospitals made an average of $880 in operating profit per discharged patient in 2019. A new Hospital Cost Tool from the National Academy for State Health Policy (NASHP) allows users to look at how much money on average is paid to hospitals on the state level and then filter by bed size, individual hospital, or hospital ownership.

Operating profit is determined by subtracting hospital operating costs from net patient revenue (per adjusted patient discharge). New York hospitals make approximately 43% less than the national operating profit average of $1,547.

The median net profit margin for all New York hospitals (163) was 1% in 2019, while the nationwide average was 4.4%. Hospitals with up to 25 beds had the greatest profit margin percentage in the state, 7.2%. Hospitals with 26-100 beds had a profit margin of 0% and hospitals with 101-250 beds had a -0.9% profit margin, indicating that they are losing money. Hospitals with 251+ beds had a profit margin of 1%.

Profit margins in New York hospitals do not follow trends seen in the U.S. on average. The nationwide profit margin of hospitals grows as the number of beds increases. See the difference in the chart below:

Number of beds Profit margin nationwideProfit margin in New York
0-252.8%7.2%
26-1003.3%0%
101-2505.1%-.9%
251+7.1%1%

“This new tool provides a view of publicly reported hospital data that isn’t otherwise available to policymakers and purchasers,” said NASHP’s Executive Director, Hemi Tewarson. “NASHP’s tool is an important resource for understanding costs of individual hospital and health systems-a critical first step to thoughtfully addressing rising health care costs.”

To help patients know the price of healthcare services before undergoing procedures or surgery, the federal government told hospitals they had to provide price information online beginning last January. Hospitals are required to make information on prices available for each insurance they accept and have a comprehensive list will all services or items.