MERGER INDIGESTION

Hoag Memorial Hospital Presbyterian and Providence hoped scale would yield syntergies. But after the merger, expenses kept pace with operating revenues, and labor costs proved difficult to control.
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REVENUE VS. EXPENSES

From 2015 — two years after Hoag merged with Providence — to 2019, estimated operating revenue per day* rose 29.2%. But average operating expenses per day rose 34.1% over that span.

*Average per day in the reported fiscal year

FTEs PER ADJUSTED OCCUPIED BED

While Hoag’s FTEs fell to 5.99 per adjusted occupied bed in 2015, by 2019 the measure had risen to 6.75. During the same period, the median for large** hospitals fell to 4.65 from 4.98 in 2013.

**Large = Non-teaching acute-care hospitals with more than 250 acute care beds