Even before the national economy tanked last fall, 30 percent of Pennsylvania's acute care hospitals were losing money, according to a new financial analysis by the Pennsylvania Health Care Cost Containment Council.

And total margin for all hospitals -- a measure of the hospitals' profitability -- dropped from 6.56 percent in fiscal 2007 to 4.7 percent last fiscal year, which ended June 30, 2008, the first decline in five years.

When calculating total margin, the council looked at a hospital's expenses compared to revenues from both its operations and other sources such as investments. If total margin came out negative, it meant the hospital lost money.

Among local hospitals, Canonsburg General had the biggest loss with a 9.67 percent dip in total margin for 2007-08, while UPMC Braddock and UPMC South Side had total margin losses exceeding 7 percent.

Children's Hospital of Pittsburgh of UPMC had a total margin loss of slightly more than 6 percent, while Allegheny General Hospital recorded a 5.23 percent loss.

The biggest gains were at Magee-Womens Hospital, with 17.39 percent, and UPMC Passavant, 13.78 percent. Butler Memorial Hospital followed with a 9.01 percent total margin.

The report says nonoperating revenue for the 172 licensed hospitals, which is largely derived from investment income, fell $332 million, or 64 percent, in the fiscal year ending June 30, 2008, before the brunt of the recession.

"It can be anticipated that the decline in statewide nonoperating income ... will be greater" in the current fiscal year, the report said.

The report also showed that hospitals' uncompensated care, which is a combination of charity care and bad debt, grew 11.1 percent to $753 million.

Overall, inpatient discharges, average length of stay and total patient days remained stable.