Detroit-based Henry Ford Health System saw revenues increase in the first six months of this year, but ended the period with lower net income than in the first half of 2016.
In the first half of 2017, Henry Ford Health System reported net income of $65.06 million on revenues of $3 billion. That's compared to the first six months of 2016 when the system recorded net income of $322 million on revenues of $2.8 billion, according to recently released bondholder documents.
After eliminating unusual items, the system's net income fell from $76.5 million in the first half of last year to $66.1 million in the first six months of 2017.
Henry Ford Health System said the softened performance was attributable to several factors, including wage rate increases and Epic implementation costs at Jackson, Mich.-based Allegiance Health Group, which Henry Ford Health System acquired in 2016.
The system is taking a number of steps to improve its financial picture.
"Management has been implementing interventions to improve future performance with continued emphasis on the system's multi-year strength and sustainability program to create value through cost reduction, growth, population health leverage, care redesign, and revenue cycle initiatives," according to the bondholder documents.
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