SSM Health St. Mary’s Hospital in Madison has experienced a decline in charity care in recent years, despite substantial financial gains, according to an article in the Wisconsin State Journal. Meanwhile, other hospitals in Madison and across the state have maintained relatively steady levels of charity care.
In 2018 and 2019, St. Mary’s allocated about 1.2% of its total revenue to provide free or discounted care for eligible patients with low incomes — a higher percentage compared to UW Hospital, UnityPoint Health-Meriter, and the statewide average. However, in 2020, this figure dropped to 0.6%, further decreasing to 0.4% in 2021 and 0.2% in the past year. This downward trend has positioned St. Mary’s significantly below other hospitals in the region for the last two years.
The amount spent by St. Mary’s on charity care decreased from $4.8 million in 2019 to $1 million last year. Simultaneously, the number of patients receiving assistance annually dwindled from 2,501 to 571, according to reports from the Wisconsin Hospital Association.
Despite the decrease in charity care, St. Mary’s operating margin — calculated by deducting operating costs from revenue — averaged 13.7% from 2018 to 2022. This surpasses the statewide average for hospitals, which stands at 8.4%. Throughout this period, St. Mary’s reported an average annual net income, inclusive of operating income and investment gains or losses, of $72.5 million.
