Baystate Health saw revenue increase in fiscal year 2016, but the Springfield, Mass.-based system ended the period with significantly less operating income than the year prior.
Baystate recorded revenue of $2.35 billion in FY 2016, up 10 percent from revenue of $2.14 billion the year prior, according to recently released bondholder documents.
The system's expenses also increased in the most recent fiscal year, growing nearly 7.4 percent year over year to $2.3 billion in FY 2016. Baystate reported labor costs climbed to $868.55 million, up from $811.4 million in FY 2015. Supplies costs rose 5.5 percent year over year to $725.37 million in FY 2016.
Baystate ended FY 2016 with operating income of $28.98 million, down 52 percent from $59.79 million the year prior.
In a statement to Becker's, a Baystate spokesman said the system is facing financial pressure. "The healthcare financing environment in Mass. remains extremely challenging, especially outside of Boston, and we continue to face significant financial pressure from Medicaid underfunding," he said.
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