Geisinger's operating margin improves as premium revenue increases

Danville, Pa.-based Geisinger Health System reported operating income of $159.8 million on revenue of $4.6 billion for the fiscal year that ended June 30, compared to operating income of $136.8 million on revenue of nearly $4 billion for FY 2014.

The boost in the system's revenue in the most-recent fiscal year was partially attributable to a 22.5 percent uptick in net patient service revenue. Geisinger also reported its premium revenue grew 7.8 percent in FY 2015 compared to the year prior.

The system ended FY 2015 with a 3.5 percent operating margin, up from a 3.4 percent operating margin in FY 2014.

After accounting for a hit on its investments, Geisinger reported a net surplus of $194.8 million for FY 2015, down 54.5 percent from last year.

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