DataPoint: 2018 ACF Profit Margins

Based on LeadingAge NY analysis of Adult Care Facility (ACF) Cost Reports received from the Department of Health (DOH), the statewide median operating margin was 0.0 percent in 2018, down from 2.16 percent in 2016. Operating margin is a measure of profitability used to determine financial risk. Statewide, 48.6 percent of ACFs operated with a negative operating margin. Among not-for-profit facilities, median operating margin was -2.4 percent, compared to 0.6 percent for proprietary facilities. During 2018, nearly 60 percent of not-for-profit ACFs dealt with operating losses, which was 8 percent higher than the number of facilities reporting losses in 2016. In the Capital Region, the median operating margin was -1.4 percent, which was the lowest statewide. In contrast, the New York City Metropolitan Region’s median operating margin was 1.1 percent, representing the only region with a positive operating margin.

Contact: Ken Allison, kallison@leadingageny.org, 518-867-8820