Guides to Hospital Financial Analysis

As states seek ways to improve health care affordability and access, it’s important that they understand health system finances, including hospital revenue and cost drivers. A new series of Peterson-Milbank analytics support resources offers insight into how to use publicly available data sources to examine the financial condition of hospitals, as well as identify opportunities to reduce health care spending growth while avoiding any unintended consequences that might result.

The new resources include:

• Guide to Understanding Hospital Spending through Financial Analysis
  • Illustrative Case Studies and Financial Analysis Template (Excel file)
• Guide to Grouping Outpatient Hospital Claims for Spending Analyses

Check out a recording of an April 9, 2024 webinar with the guide authors and a panel of experts.

Guide to Understanding Hospital Spending through Financial Analysis

Developed by Manatt Health and Bailit Health, this guide provides state analysts with direction on how to use Audited Financial Statements, IRS Form 990 Filings, and Medicare Cost Reports (MCRs) to better understand the financial health of their local health systems and hospitals.

Understanding Hospital Spending through Financial Analysis: Illustrative Case Studies

This companion set of illustrative case studies of three health systems from Bailit Health shows how to use a framework of key financial indicators to analyze Audited Financial Statements and interpret their findings. The Financial Analysis Template is available for download.

Guide to Grouping Outpatient Hospital Claims for Spending Analyses

Developed by Manatt Health, this guide is designed to help analysts create meaningful and comparative categories for these types of services, which often drive increased utilization and spending.